On January 1, 2009, Neal Corporation acquired equipment at a cost of $540,000. Neal adopted the sum-of-the-years’-digits method of depreciation for this equipment and had been recording depreciation over an estimated life of eight years, with no residual value. At the beginning of 2012, a decision was made to change to the straight-line method of depreciation for this equipment. The depreciation expense for 2012 would be Select one: a. $108,000 b. $28,125. c. $67,500 d. $45,000.
On January 1, 2009, Neal Corporation acquired equipment at a cost of $540,000. Neal adopted the sum-of-the-years’-digits method of depreciation for this equipment and had been recording depreciation over an estimated life of eight years, with no residual value. At the beginning of 2012, a decision was made to change to the straight-line method of depreciation for this equipment. The depreciation expense for 2012 would be Select one: a. $108,000 b. $28,125. c. $67,500 d. $45,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
On January 1, 2009, Neal Corporation acquired equipment at a cost of $540,000. Neal adopted the sum-of-the-years’-digits method of
Select one:
a.
$108,000
b.
$28,125.
c.
$67,500
d.
$45,000.
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