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g Equipment was purchased for $94700 on January 1, 2021. Freight charges amounted to $3800 and there was a cost of $12000 for building a foundation and installing the equipment. It is estimated that the
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g Equipment was purchased for $94700 on January 1, 2021. Freight charges amounted to $3800 and there was a cost of $12000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $25000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2022 if the straight-line method of depreciation is used

User IMatoria
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1 Answer

22 votes
22 votes

Answer:

$34,200

Step-by-step explanation:

Calculation of total Cost of Equipment

Purchase Price $94700

Freight charges $3800

Foundation and Installation $12000

Total $110,500

Annual Depreciation = Cost - Salvage Value / Useful Life

= ( $110,500 - $25000) / 5

= $17,100

Accumulated Depreciation = $17,100 x 2 = $34,200

Therefore,

the amount of accumulated depreciation at December 31, 2022 is $34,200.

User MarkCo
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