Answer:
second year depreciation 13,072
Explanation:
190,000 - 10,000 = 180,000 ammount subject to depreciation
then we do:
180,000/75,000 = 0.688 rate per bolt
to get the depreciation for the second year:
19,000 x rate = 19,000 x 180,000/75,000 = $13,072.00
doing it in a single step avoid rounding errors.
school or expirence and the knowledge to do it and th ejob right
Answer:
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Explanation:
answer
Answer:
would capitalize the equipment at $61,500
Explanation:
The capitalized cost of the equipment purchased consists of invoice price of the equipment,transportation costs,sales tax paid as well as costs of installing the equipment .
The capitalized cost is computed as follows:
Cash paid $56,000
Transportation costs $1,600
Sales tax paid $2,300
Installation costs $1,600
total cost $61,500
The rationale for sales tax is that it is recoverable,however the costs of transportation and installation were included because they were incurred in bringing the asset to its current location and condition
