Cutter Enterprises purchased equipment for $81,000 on January 1, 2024. The equipment is expected to have a five-year life and a residual value of $7,200. Using the sum-of-the-years'-digits method, depreciation for 2025 and book value on December 31, 2025, would be: Note: Do not round the depreciation rate per year. Multiple Choice $19,680 and $36,720, respectively. $21,600 and $25,200, respectively. $21,600 and $32,400, respectively. $19.680 and $29520 espectively
Cutter Enterprises purchased equipment for $81,000 on January 1, 2024. The equipment is expected to have a five-year life and a residual value of $7,200. Using the sum-of-the-years'-digits method, depreciation for 2025 and book value on December 31, 2025, would be: Note: Do not round the depreciation rate per year. Multiple Choice $19,680 and $36,720, respectively. $21,600 and $25,200, respectively. $21,600 and $32,400, respectively. $19.680 and $29520 espectively
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 2E: Depreciation Methods Sorter Company purchased equipment for 200,000 on January 2, 2019. The...
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![Cutter Enterprises purchased
equipment for $81,000 on January 1,
2024. The equipment is expected to
have a five-year life and a residual
value of $7,200.
Using the sum-of-the-years'-digits
method, depreciation for 2025 and
book value on December 31, 2025,
would be:
Note: Do not round the depreciation
rate per year.
Multiple Choice
$19,680 and $36,720, respectively.
$21,600 and $25,200, respectively.
$21,600 and $32,400, respectively.
$19,680 and $29,520, respectively.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F751eefad-94aa-4662-b76b-aea464c52065%2Fcce71c89-f92d-4180-b2da-5afb3b6f85b3%2Fzuyio2_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cutter Enterprises purchased
equipment for $81,000 on January 1,
2024. The equipment is expected to
have a five-year life and a residual
value of $7,200.
Using the sum-of-the-years'-digits
method, depreciation for 2025 and
book value on December 31, 2025,
would be:
Note: Do not round the depreciation
rate per year.
Multiple Choice
$19,680 and $36,720, respectively.
$21,600 and $25,200, respectively.
$21,600 and $32,400, respectively.
$19,680 and $29,520, respectively.
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