1. Use the following information about a newly acquired plant asset for cash. Record the information in a GJ form List Price $37,000 Sales Tax 2, 500 Freight Charges 2,800 Installation 700 Repairs due to breakage while unpacking equipment 400 2. On January 1, 2000, a piece of equipment was purchased at a cost of $26,000 and has an estimated salvage of $4,000. The estimated useful of the equipment is five years. Calculate the depreciation for 2000 & 2001 using the following methods: a. The straight-line method b. The double declining balance method

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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1. Use the following information about a newly acquired plant asset for cash. Record the information in a GJ form List
Price $37,000 Sales Tax 2, 500 Freight Charges 2,800 Installation 700 Repairs due to breakage while unpacking
equipment 400 2. On January 1, 2000, a piece of equipment was purchased at a cost of $26,000 and has an estimated
salvage of $4,000. The estimated useful of the equipment is five years. Calculate the depreciation for 2000 & 2001 using
the following methods: a. The straight-line method b. The double declining balance method
Transcribed Image Text:1. Use the following information about a newly acquired plant asset for cash. Record the information in a GJ form List Price $37,000 Sales Tax 2, 500 Freight Charges 2,800 Installation 700 Repairs due to breakage while unpacking equipment 400 2. On January 1, 2000, a piece of equipment was purchased at a cost of $26,000 and has an estimated salvage of $4,000. The estimated useful of the equipment is five years. Calculate the depreciation for 2000 & 2001 using the following methods: a. The straight-line method b. The double declining balance method
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