The company founder hires us as consultants and asks that we oversee the accounting for new equipment purchased on January 1. The founder wants to know the implications of different depreciation methods and estimates for the company's financial statements. Those statements will be used to attract financing from new investors and creditors. At the end of the equipment's first year in operation, we are given the following Tableau Dashboard. Estimated Useful Life of Assets Purchase Price & Estimated Salvage Value Building Equipment Truck $70,000 16 $60,000 $50,000 12 $40,000 $30,000 8 $20,000 4 $10,000 $0 Purchase Salvage Purchase Salvage Purchase Salvage Building Equipment Truck Price Value Price Value Price Value 20 Years
The company founder hires us as consultants and asks that we oversee the accounting for new equipment purchased on January 1. The founder wants to know the implications of different depreciation methods and estimates for the company's financial statements. Those statements will be used to attract financing from new investors and creditors. At the end of the equipment's first year in operation, we are given the following Tableau Dashboard. Estimated Useful Life of Assets Purchase Price & Estimated Salvage Value Building Equipment Truck $70,000 16 $60,000 $50,000 12 $40,000 $30,000 8 $20,000 4 $10,000 $0 Purchase Salvage Purchase Salvage Purchase Salvage Building Equipment Truck Price Value Price Value Price Value 20 Years
Century 21 Accounting General Journal
11th Edition
ISBN:9781337680059
Author:Gilbertson
Publisher:Gilbertson
Chapter19: Accounting For Plant Assets, Depreciation, And Intangible Assets
Section19.2: Calculating Depreciation Expense
Problem 1WT
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