Rockshore Construction Ltd. purchased a used Caterpillar D6 dozer for $540,000 in March 2020. The company estimates the equipment's useful life to be 10 years and the salvage value to be $60,000. Using straight-line depreciation, calculate the depreciation expense for 2020, the first year of the equipment’s life, and determine the equipment’s net book value at December 31, 2022, after the third year of the equipment’s life. (Round your calculation to nearest number for accumulated depreciation if needed.)
Rockshore Construction Ltd. purchased a used Caterpillar D6 dozer for $540,000 in March 2020. The company estimates the equipment's useful life to be 10 years and the salvage value to be $60,000. Using straight-line depreciation, calculate the depreciation expense for 2020, the first year of the equipment’s life, and determine the equipment’s net book value at December 31, 2022, after the third year of the equipment’s life. (Round your calculation to nearest number for accumulated depreciation if needed.)
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 13P
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Rockshore Construction Ltd. purchased a used Caterpillar D6 dozer for $540,000 in March 2020. The company estimates the equipment's useful life to be 10 years and the salvage value to be $60,000. Using straight-line depreciation, calculate the depreciation expense for 2020, the first year of the equipment’s life, and determine the equipment’s net book value at December 31, 2022, after the third year of the equipment’s life. (Round your calculation to nearest number for accumulated depreciation if needed.)
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