When solving for a present value, all cash flows should be discounted from the A : future to the present. B : the past to the fu
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Answer:
$206000.
Explanation:
Given: Asset purchase value =
Residual value after five years=
Estimated useful life of asset= five years.
Now, we will calculate depreciation per year using straight line method.
Depreciation=
⇒ Depreciation =
∴ Depreciation expense per year =
Briar Co. disposed of a $6,000 piece of equipment on December 31 with $4,500 in accrued depreciation as of that date. Then $1,500 will be debited from the Loss on Equipment Disposal account.
<h3>What is loss on Equipment Disposal account?</h3>Gain/Loss on Asset Disposal is a common account name of the Equipment Disposal account.
The net difference between the initial asset cost and any cumulative depreciation (if any) is debited to the disposal account, while the balances in the fixed asset account and the accumulated depreciation are reversed.
On December 31, the debited amount is calculated as:
Therefore, $1,500 will be the amount of loss on disposal of the Equipment.
Learn more about the depreciation, refer to:
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