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Problem - Do-Good Inc. is a not-for-profit organization that was formed on January 1, 2020. Do- Good has a December 31 year end. It has an accounting policy of capitalizing and amortizing its capital assets. On April 1, 2020, Do-Good purchased equipment costing $8,000. The equipment is estimated to have a useful life of 4 years, with no residual value at that time. This transaction was the only transaction that took place to date.
Required - The equipment was purchased from a restricted fund contribution of $8,400. What would be the carrying value of the equipment on December 31, 2020?
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