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Century 21 Accounting General Journal

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets

Section: Chapter Questions

Problem 1AFE

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The reed company uses the straight-line method to depreciate its
equipment. On may 1, 2007, the company purchased some equipment for
$200,000. The equipment is estimated to have a useful life of ten years
and a salvage value of $20,000. How much depreciation expense should
Reed record for the equipment in the adjusting entry on December 31,
2007?
a.$6,000
b.$12,000
c.$13,500
d.$18,000

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