In 1/1/2016, ABC company purchased an equipment costing $22000. The useful life was 10 years. The salvage value was $2000. ABC decided to use the straight-line method in calculating depreciation. During 2020, ABC had the following new information: it was found that the equipment will serve another 10 years, starting from 1/1/2020. The salvage value would be $4000 instead of $2000. Then the depreciation expense for 2020 is:
In 1/1/2016, ABC company purchased an equipment costing $22000. The useful life was 10 years. The salvage value was $2000. ABC decided to use the straight-line method in calculating depreciation. During 2020, ABC had the following new information: it was found that the equipment will serve another 10 years, starting from 1/1/2020. The salvage value would be $4000 instead of $2000. Then the depreciation expense for 2020 is:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![-2
f
cion
In 1/1/2016, ABC company purchased an equipment costing $22000.
The useful life was 10 years. The salvage value was $2000.
ABC decided to use the straight-line method in calculating depreciation.
During 2020, ABC had the following new information:
* it was found that the equipment will serve another 10 years, starting from 1/1/2020.
* The salvage value would be $4000 instead of $2000.
Then the depreciation expense for 2020 is:
Select one:
O
O
O
a. 1000
b. 200
c. All answers are false
d. 22000
e. 2000
4](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ffb83fc84-53d3-4f1b-a016-e99f8a4ab2ca%2F0da86ce1-8511-45a8-ba71-c7ff21b031e8%2Fsrm0b1r_processed.jpeg&w=3840&q=75)
Transcribed Image Text:-2
f
cion
In 1/1/2016, ABC company purchased an equipment costing $22000.
The useful life was 10 years. The salvage value was $2000.
ABC decided to use the straight-line method in calculating depreciation.
During 2020, ABC had the following new information:
* it was found that the equipment will serve another 10 years, starting from 1/1/2020.
* The salvage value would be $4000 instead of $2000.
Then the depreciation expense for 2020 is:
Select one:
O
O
O
a. 1000
b. 200
c. All answers are false
d. 22000
e. 2000
4
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