Homework Answers
part 1 :
c.$3000.
depreciation under straight line method = (cost - salvage value) / life in years
=> ($21,000 - 3000) / 6 years
=> $3,000.
part2:
a.Inventory.
Under perpetual inventory system inventory account is debited if the purchaser pays for freight.
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useful life 10 years
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salvage value 10,000
useful life 8 years
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salvage value 6,000
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