Equipment was purchased for $86200 on January 1, 2021. Freight charges amounted to $2800 and there was a cost of $12000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $17000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2022 if the straight-line method of depreciation is used?

Equipment was purchased for $86200 on January 1, 2021. Freight charges amounted to $2800 and there was a cost of $12000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $17000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2022 if the straight-line method of depreciation is used?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 3EA: Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is...

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Montello Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and is expected to be driven for eight years. Montello uses the straight-line depreciation method. Calculate the annual depreciation expense.