On April 1st, 2015 a plant equipment was purchased in the amount of $275K. The useful live
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Question:
On April 1st, 2015 a plant equipment was purchased in the amount of $275K.
The useful live of the equipment is 8 years.
The original accountant did not depreciate the equipment for the first year properly.
The only amount that was depreciated in the first year was only $7,031.25.
They decided to salvage it when it was valued at $50K.
1.What is the first year depreciation expense. (Year end Dec 2015)
2. What is the correcting entry posting that needs to be made to true up year one
The managers decided to sell the equipment on May 1 2018.
3. What is the book value of the equipment purchase and the minimum they should sell it.
Related Book For
South Western Federal Taxation 2017 Comprehensive
ISBN: 9781305874169
40th Edition
Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young
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