Mitchell Corporation bought equipment on January 1, 2014 .The equipment cost $180,000 and had an expected salvage value of $30,000. The life of the equipment was estimated to be 6 years. The depreciable cost of the equipment is
A) $180,000.
B) $150,000.
C) $30,000.
D) $25,000.

Question

Quizplus · Accepted Answer

The depreciable cost is calculated by subtracting the salvage value from the initial cost of the equipment: $180,000 - $30,000 = $150,000.

Mitchell Corporation Bought Equipment on January 1, 2014