A telephone company purchased a microwave radio equipment for 6,000,000.00. Freight and installation charges amounted to 3% of the purchased rice. If the equipment shall be depreciated over a period of 8 years with a salvage value of 5%, determine the following: a.) Annual depreciation charge using the straight line method. b.) Depreciation charge during the 5th year using the sum-of-the year’s digits method
A telephone company purchased a microwave radio equipment for 6,000,000.00. Freight and installation charges amounted to 3% of the purchased rice. If the equipment shall be depreciated over a period of 8 years with a salvage value of 5%, determine the following: a.) Annual depreciation charge using the straight line method. b.) Depreciation charge during the 5th year using the sum-of-the year’s digits method
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 1RE: Susquehanna Company purchased an asset at the beginning of the current year for 250,000. The...
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- A telephone company purchased a microwave radio equipment for 6,000,000.00. Freight and
installation charges amounted to 3% of the purchased rice. If the equipment shall be
over a period of 8 years with a salvage value of 5%, determine the following:
a.) Annual depreciation charge using the
b.) Depreciation charge during the 5th year using the sum-of-the year’s digits method.
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