Problem 2 I-core Company acquired an equipment on January 1, 2008. The asset has an estimated life of four years. An employee has prepared a depreciation schedule for this equipment using two methods, straight line and double declining balance, as follows: 2008 2009 2010 2011 Straight line 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 6,000,000.00 What was the acquisition cost of the equipment? Double Declining 3,250,000.00 1,625,000.00 812,500.00 312,500.00 6,000,000.00

Problem 2 I-core Company acquired an equipment on January 1, 2008. The asset has an estimated life of four years. An employee has prepared a depreciation schedule for this equipment using two methods, straight line and double declining balance, as follows: 2008 2009 2010 2011 Straight line 1,500,000.00 1,500,000.00 1,500,000.00 1,500,000.00 6,000,000.00 What was the acquisition cost of the equipment? Double Declining 3,250,000.00 1,625,000.00 812,500.00 312,500.00 6,000,000.00

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 71BPSB: Depreciation Schedules Dunn Corporation acquired a new depreciable asset for $135,000. The asset has...

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