Compute the book value of the equipment at the end of year

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Reference no: EM132864734

On January 2, Year 1, Gonzales Company purchased equipment costing $72,000. The equipment has an estimated salvage value of $10,440 and an estimated useful life of 12 years.

  • Gonzales Company uses straight-line depreciation. On January 5 of Year 5, new information suggests that the equipment will have a total useful life of 8 years and a revised salvage value of $8,280.

Required:

Problem 1. Compute depreciation expense for Year 5.

Problem 2. Compute the book value of the equipment at the end of Year 5.

1. Depreciation expense for Year 5:$

2. Book value at the end of Year 5:$

Reference no: EM132864734

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