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help please ! short answer question that im stuck on
ord. Connect - Sign In Saved Help Save & Exit On January 1 year 1. Castile, Inc. purchased (1) equipment with a cost of $80,0
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Answer #1

Depreciation expense to be recognised in year 1

Equipment cost =$80,000                                   Truck cost=$50,000

Salvage value=$10,000                                       salvage value=$5,000

Useful life=7 years                                               useful life=5 years

Depreciation = (cost-salvage value)/useful life

Depreciation on equipment    = (80000-10000)/7

                                                     = $10000 per year

Depreciation on Truck            = (50000-5000)/5

                                                    =$9000 per year

1) So, total Depreciation expense to be recognised for year 1 is (10,000+9000) = $19,000.

2) Accumulated Depreciation on equipment at end of year 2 is $10,000*2= $20,000.

3) Accumulated Depreciation on truck at end of year 3 is $9000*3 =$27,000.

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