Gandolfi Construction Company purchased a CAT 336DL earth mover at a cost of $415,000 in January 2022. The company's estimated useful life of this heavy equipment is 20 years, and the estimated salvage value is $84,000. Required: a. Using straight-line depreciation, calculate the depreciation expense to be recognized for 2022, the first year of the equipment's life, and calculate the equipment's net book value at December 31, 2024, after the third year of the equipment's life. b. Using declining-balance depreciation at twice the straight-line rate, calculate the depreciation expense to be recognized for 2024, the third year of the equipment's life. Answer is not complete. $ 16,550✔ $365,350 a. Depreciation expense a. Net book value b. Double-declining rate b. Depreciation expense %
Gandolfi Construction Company purchased a CAT 336DL earth mover at a cost of $415,000 in January 2022. The company's estimated useful life of this heavy equipment is 20 years, and the estimated salvage value is $84,000. Required: a. Using straight-line depreciation, calculate the depreciation expense to be recognized for 2022, the first year of the equipment's life, and calculate the equipment's net book value at December 31, 2024, after the third year of the equipment's life. b. Using declining-balance depreciation at twice the straight-line rate, calculate the depreciation expense to be recognized for 2024, the third year of the equipment's life. Answer is not complete. $ 16,550✔ $365,350 a. Depreciation expense a. Net book value b. Double-declining rate b. Depreciation expense %
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 13PA: Colquhoun International purchases a warehouse for $300,000. The best estimate of the salvage value...
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