KFC purchased a new low-fat chicken cooker at a cost of $26,500. The estimated life of the fryer is 5 years, with a salvage value of $3500. Find: (a) the annual rate of depreciation, (b) the annual amount of depreciation, and (c) the book value at the end of the first year.

KFC purchased a new low-fat chicken cooker at a cost of $26,500. The estimated life of the fryer is 5 years, with a salvage value of $3500. Find: (a) the annual rate of depreciation, (b) the annual amount of depreciation, and (c) the book value at the end of the first year.

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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KFC purchased a new low-fat chicken cooker at a cost of $26,500. The
estimated life of the fryer is 5 years, with a salvage value of $3500.
Find:
(a) the annual rate of depreciation,
(b) the annual amount of depreciation, and
(c) the book value at the end of the first year.

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