Thanks for the points
Have a great day/night
THE AMAZING THING ABOUT BOOKS is how they have lives of their own. Writers think they know their
business when they sit down to compose a new work, and I suppose they do, right up to the moment
when the last piece of punctuation gets planted on the final sentence. More often than not, that
punctuation is a period. It should be a question mark, though, because what occurs from then on is
anybody’s guess.
Answer:
The asset's depreciable basis is:
= $270,500
Explanation:
a) Data and Calculations:
Equipment purchase cost = $250,000
Freight charges = 500
Installation costs = 750
Sales tax 18,750
Special consultant fee 500
Total acquisition costs = $270,500
Depreciable basis = Acquisition costs - Salvage value
= $270,500 - $0
= $270,500
b) The depreciable basis is the amount of the asset that is subject to depreciation over its useful life. This amount is obtained by subtracting the salvage value from the acquisition costs. The acquisition costs include the purchase price of an asset plus the costs incurred to put the asset into service, which include any sales taxes, delivery charges, and installation fees.
