On 01/4/2015, "ABC" Company purchased equipment for $120.000 On that date, the company estimated that the equipment salvage value and useful life will be equal to $5.000 and 10 years, respectively. Based on the above-given information answer the following questions, assuming the company is using the Double declining balance method for depreciation: 1. What is the depreciation expense for the year 2015 that will be presented on the income statement? 2. What is the equipment book value as on 31/12/2017? 3. if the company decided to exchange the equipment on 1/7/2018 with a new one. The current equipment (old one) has a fai market value of $55.000. and the fair market value of the new one is $90,000, based on that: o What is the amount of cash that "ABC" Company pay? • The exchange will result in "ABC" Company recording with an amount equal to

On 01/4/2015, "ABC" Company purchased equipment for $120.000 On that date, the company estimated that the equipment salvage value and useful life will be equal to $5.000 and 10 years, respectively. Based on the above-given information answer the following questions, assuming the company is using the Double declining balance method for depreciation: 1. What is the depreciation expense for the year 2015 that will be presented on the income statement? 2. What is the equipment book value as on 31/12/2017? 3. if the company decided to exchange the equipment on 1/7/2018 with a new one. The current equipment (old one) has a fai market value of $55.000. and the fair market value of the new one is $90,000, based on that: o What is the amount of cash that "ABC" Company pay? • The exchange will result in "ABC" Company recording with an amount equal to

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Description: On 01/4/2015, "ABC" Company purchased equipment for $120,000 On that date, the company estimated that the equipmentsalvage value and useful life will be equal to $5.000 and 10 years, respectively.Based on the above-given information answer the follo

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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