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elixir [45]
4 years ago
15

Equipment was purchased for $85,000 on january 1, 2015. freight charges amounted to $3,500 and there was a cost of $10,000 for b

uilding a foundation and installing the equipment. it is estimated that the equipment will have a $15,000 salvage value at the end of its 5-year useful life. what is the amount of accumulated depreciation at december 31, 2016, if the straight-line method of depreciation is used?
Mathematics
1 answer:
Elena-2011 [213]4 years ago
3 0
85000+3500+10000=98500 is a historic price of equipment. Annual depreciation is (98500-15000)/5=83500/5=16700. At december 31 2016 will be gone 2 years-2015 and 2016. So the accumulated depreciation will be 2*16700=33400
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