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On January 1, Year 1, Jing Company purchased office equipment that cost $18,300 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2,800. The equipment had a five-year useful life and a $6,800 expected salvage value.

Respuesta :

TomShelby

Answer:

equipment value 21,100

depreciation per year under striaght-line method: $2,860

Explanation:

All incurred cost needed to leave the equipment ready for use must be capitalized:

We should incluide

cost 18,300 + 2,800 freight-in cost = 21,100

[tex]\frac{Adquisition \: Value- \: Salvage \: Value}{useful \: life}= Depreciation \: coplete \: year[/tex]

[tex]\frac{21,100 - 6,800}{5}= Depreciation \: coplete \: year[/tex]

depreication per year: 2,860

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