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Problem regarding the plant and equipment

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The Andrews Company has just purchased $50,852,000 of plant and equipment that has an estimated useful life of 15 years. Suppose at the end of 15 years this plant and equipment can be salvaged for $5,085,200 (1/10th of its original cost). What will be the book value of this purchase (excluding all other Plant and Equipment) after its first year of use? Use generally accepted (FASB) accounting principles.

Select: 1

  • $47,800,880
  • $42,715,680
  • $45,766,800
  • $47,461,86

Reference no: EM131964627

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