Question

Brinkman Corporation bought equipment on January 1, 2007 .The equipment cost $90,000 and had an expected salvage value of $15,000. The life of the equipment was estimated to be 6 years.The depreciable cost of the equipment isa. $90,000b. $75,000c. $50,000d. $12,500

Answer 1

The correct answer is B.

Step-by-step explanation:

Giving the following information:

The equipment cost $90,000 and had an expected salvage value of $15,000. The life of the equipment was estimated to be 6 years.

Depreciable cost= purchase price - salvage value

Depreciable cost= 90,000 - 15,000= $75,000