Cargill purchased equipment for $96,000 on January 1, 2024. The equipment is expected to have a five-year life and a residual value of $4,500. Cargill uses the straight-line method. The book value on December 31, 2024, would be:

Cargill purchased equipment for $96,000 on January 1, 2024. The equipment is expected to have a five-year life and a residual value of $4,500. Cargill uses the straight-line method. The book value on December 31, 2024, would be:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

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