Abesu Inc. purchased equipment costing $20,000 on January 1, 2019. The equipment amortizes at a rate of 4% each year. Calculate the amortization expense on the equipment for 2020. 1. $1600 2. $800 3. $1568 4. None of the answers are correct 5. $768

Abesu Inc. purchased equipment costing $20,000 on January 1, 2019. The equipment amortizes at a rate of 4% each year. Calculate the amortization expense on the equipment for 2020. 1. $1600 2. $800 3. $1568 4. None of the answers are correct 5. $768

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

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(Multiple Choice Question)

Abesu Inc. purchased equipment costing $20,000 on January 1, 2019. The equipment amortizes at a rate of 4% each year. Calculate the amortization expense on the equipment for 2020.

1. $1600

2. $800

3. $1568

4. None of the answers are correct

5. $768

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