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vladimir1956 [14]
3 years ago
11

Franklin Corporation bought equipment on January 1st, 2022 .The equipment cost $150,000 and had an expected salvage value of $30

,000. The life of the equipment was estimated to be 6 years. The depreciable cost of the equipment is________.
Business
1 answer:
Dima020 [189]3 years ago
8 0

Answer:

$120,000.00

Explanation:

Depreciable cost is the amount of money that can be depreciated over time from the value of an asset. It is the total book value an asset loses for being in production in its useful life. Depreciable cost is important is calculating the annual depreciation.

Depreciable cost is a result of the cost of an asset minus its expected salvage value.

In case case: $150,000- $ 30,000

=$120,000.00

Depreciable value is $120,000

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