On January 2, 2019, Kaiman Corporation acquired equipment for $ 700,000. The estimated life of the equipment is 5 years or 50,0

Question

3 years ago

15

On January 2, 2019, Kaiman Corporation acquired equipment for $ 700,000. The estimated life of the equipment is 5 years or 50,0

00 hours. The estimated residual value is $ 10,000. What is the balance in Accumulated Depreciation on December 31, 2020, if Kaiman Corporation uses the straightminusline method of depreciation?

Business

1 answer:

Aneli [31] · Answer 1 · 2022-04-27T02:27:45+03:00

Answer:

Accumulated depreciation= $276,000

Explanation:

Giving the following information:

On January 2, 2019, Kaiman Corporation acquired equipment for $ 700,000. The estimated life of the equipment is 5 years. The estimated residual value is $ 10,000.

Depreciable value= 700,000 - 10,000= 690,000

Straight-line depreciation= 690,000/5= $138,000

Accumulated depreciation= 138,000*2= $276,000

On January​ 2, 2019, Kaiman Corporation acquired equipment for $ 700,000. The estimated life of the equipment is 5 years or 50,0

On January 2, 2019, Kaiman Corporation acquired equipment for $ 700,000. The estimated life of the equipment is 5 years or 50,0