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3 years ago

5

A city government purchased a new fire truck in Year 1 for $270,000. The city incurred an additional $ 30,000 in transportation

and calibration costs to ready it for use. It has an estimated useful life of 20 years, though it is being financed over a 15 year period. The amount of depreciation that will be reported each year in the General Fund will bea. $0. b. $13,500. c. $15,000. d. $18,000.

1 answer:

erica [24]3 years ago

6 0

Answer:

correct option is $0

Explanation:

given data

purchased truck = $270,000

transportation and calibration costs = $30,000

life = 20 years

financed period = 15 year

solution

we know here that some expenses like insurance and depreciation etc is allocated by systematic and the rational procedure for some period

so that during that period related asset is expected to provide the benefit

and acquisition of capital asset is not record as expenses

we know appropriate property and plant or the equipment assets account are debit on purchases

so that Depreciation expenses are recorded to reflect the allocation of costs of the asset to operation over service life of assets

so here correct option is $0

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3 years ago

Casey Electronics has a piece of machinery that costs $300,000 and is expected to have a useful life of 6 years or 40,000 hours.

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Answer:

None of the given options.

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Answer:

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Credit Fees Earned, $8,370

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