Question

The equipment has an estimated useful life of ten years and an expected salvage value of 20 percent. Gravity Hospital’s December 31, 2015, balance sheet reports $10,000 of accumulated depreciation on this equipment. What was the cost of the equipment when it was acquired on January 1, 2011?

Answer 1

The cost of the equipment when it was acquired on January 1, 2011 is $10000

Step-by-step explanation:

10000÷5=2000

2000*10=20000

20000 80%

X 100% X=25000

25000*20%= 5000 25000-20000=20000

2011 2000

2012 2000

2013 2000

2014 2000

2015 2000 10000