Question

Monty Corp. bought equipment on January 1, 2022. The equipment cost $360000 and had an expected salvage value of $65000. The life of the equipment was estimated to be 4 years. The depreciable cost of the equipment is

$360000.


$73750.


$65000.


$295000.

Answer 1

$295000.

Step-by-step explanation:

Depreciable cost = asset cost - salvage value.

For Monty Corp, asset cost is $360000, and salvage value is $65000

Depreciable cost

=$360,000 - $65,000

=$295,000