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Compute the amount of depreciation expense

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Reference no: EM132463432

Paul White, maintenance supervisor for Cullumber Insurance Co., has purchased a riding lawnmower and accessories to be used in maintaining the grounds around corporate headquarters. He has sent the following information to the accounting department.

Cost of mower and accessories           $6,300

Date purchased 7/1/20

Estimated useful life 6 yrs

Monthly salary of groundskeeper         $1,110

Salvage value                                        $0

Estimated annual fuel cost                    $120

Question 1: Compute the amount of depreciation expense (related to the mower and accessories) that should be reported on Cullumber's December 31, 2020, income statement. Assume straight-line depreciation.

Reference no: EM132463432

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