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ravis Co. decided set up a corporation issuing 5000 shares of P20 par ordinary stocks trading at P25 in the stock market in exchange for an equipment with a fair value of 150,000. Similarly, Travis Co. has a similar equipment which it bought for 160,000. The equipment is depreciated over 5 years using the straight-line method and it has no salvage value. How much is the depreciation on the first year?  a. 30,000 b. 32,000

ravis Co. decided set up a corporation issuing 5000 shares of P20 par ordinary stocks trading at P25 in the stock market in exchange for an equipment with a fair value of 150,000. Similarly, Travis Co. has a similar equipment which it bought for 160,000. The equipment is depreciated over 5 years using the straight-line method and it has no salvage value. How much is the depreciation on the first year?  a. 30,000 b. 32,000

FINANCIAL ACCOUNTING
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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Travis Co. decided set up a corporation issuing 5000 shares of P20 par ordinary stocks trading at P25 in the stock market in exchange for an equipment with a fair value of 150,000. Similarly, Travis Co. has a similar equipment which it bought for 160,000. The equipment is depreciated over 5 years using the straight-line method and it has no salvage value. How much is the depreciation on the first year? 
a. 30,000
b. 32,000
c. 20,000
d. 25,000
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