On April 1, year 1, ABC. Ltd. purchased a piece of equipment for $ 440000 plus installation costs of $ 60000 that were necessary to make the equipment operational.       ABC. Ltd. has a December 31, fiscal year end and uses the straight line depreciation method.      The piece of equipment is expected to have a useful life of 10 years at which time it will have a residual value of $ 20000.      What is the book value of the equipment as of December 31, year 3.    Round your answer to the nearest dollar.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On April 1, year 1, ABC. Ltd. purchased a piece of equipment for $ 440000 plus installation costs of $ 60000 that were necessary to make the equipment operational.       ABC. Ltd. has a December 31, fiscal year end and uses the straight line depreciation method.      The piece of equipment is expected to have a useful life of 10 years at which time it will have a residual value of $ 20000.      What is the book value of the equipment as of December 31, year 3.    Round your answer to the nearest dollar.

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