On January 1, Year 1, Jing Company purchased office equipment that cost $15,500 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $ 1,600. The equipment had a five-year useful life and a $6,000 expected salvage value. § 010606Assuming the company uses the double - declining - balance depreciation method, what are the amounts of depreciation expense and accumulated depreciation, respectively, that would be reported in the financial statements prepared as of December 31, Year 3?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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On January 1, Year 1, Jing Company purchased office equipment that cost $15, 500 cash. The
equipment was delivered under terms FOB shipping point, and transportation cost was $
1,600. The equipment had a five-year useful life and a $6,000 expected salvage value.
§ 010606Assuming the company uses the double - declining - balance depreciation method,
what are the amounts of depreciation expense and accumulated depreciation, respectively,
that would be reported in the financial statements prepared as of December 31, Year 3?
Transcribed Image Text:On January 1, Year 1, Jing Company purchased office equipment that cost $15, 500 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $ 1,600. The equipment had a five-year useful life and a $6,000 expected salvage value. § 010606Assuming the company uses the double - declining - balance depreciation method, what are the amounts of depreciation expense and accumulated depreciation, respectively, that would be reported in the financial statements prepared as of December 31, Year 3?
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