Equipment was purchased for $52,400 on January 1, 2016. Freight charges amounted to $1,400 and there was a cost of $6,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $11,000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation on December 31, 2017, if the straight-line method of depreciation is used?

Equipment was purchased for $52,400 on January 1, 2016. Freight charges amounted to $1,400 and there was a cost of $6,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $11,000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation on December 31, 2017, if the straight-line method of depreciation is used?

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.8MCP

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What is the amount of accumulated depreciation on December 31
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