January 1, 2025, Abel Company purchased three assets for $400,000. The information below relates to the assets that were purchased: Current Market Value Forklift ................... $144,500 Bulldozer .................. $119,000 Truck ...................... $161,500 In order to make the forklift usable, Abel Company had to spend $8,000 to get the forklift in working condition. Information related to the depreciation of the forklift and the bulldozer is given below: Forklift Bulldozer Salvage value $5,400 $7,000 Life 11 years 14 years Depreciation method sum-of-the straight-
January 1, 2025, Abel Company purchased three assets for $400,000. The information below relates to the assets that were purchased: Current Market Value Forklift ................... $144,500 Bulldozer .................. $119,000 Truck ...................... $161,500 In order to make the forklift usable, Abel Company had to spend $8,000 to get the forklift in working condition. Information related to the depreciation of the forklift and the bulldozer is given below: Forklift Bulldozer Salvage value $5,400 $7,000 Life 11 years 14 years Depreciation method sum-of-the straight-
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 1, 2025, Abel Company purchased three assets for
$400,000. The information below relates to the assets that
were purchased:
Current Market Value Forklift ................... $144,500 Bulldozer .................. $119,000 Truck ...................... $161,500
In order to make the forklift usable, Abel Company had to
spend $8,000 to get the forklift in working condition.
Information related to the
and the bulldozer is given below:
Forklift Bulldozer
Salvage value $5,400 $7,000
Life 11 years 14 years
Depreciation method sum-of-the straight-line
years-digits
Calculate the forklift's book value at December 31, 2028.
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