Problem 2 I-core Company acquired an equipment on January 1, 2008. The asset has an estimated life of four years. An employee has prepared a depreciation schedule for this equipment using two methods, straight line and double declining balance, as follows: 2008 2009 2010 2011 Straight line 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 6,000,000.00 What was the acquisition cost of the equipment? Double Declining 3,250,000.00 1,625,000.00 812,500.00 312,500.00 6,000,000.00

Problem 2 I-core Company acquired an equipment on January 1, 2008. The asset has an estimated life of four years. An employee has prepared a depreciation schedule for this equipment using two methods, straight line and double declining balance, as follows: 2008 2009 2010 2011 Straight line 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 6,000,000.00 What was the acquisition cost of the equipment? Double Declining 3,250,000.00 1,625,000.00 812,500.00 312,500.00 6,000,000.00

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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