On January 1, 2011, Alabama Company purchased equipment at a cost of $40,000. The equipment was estimated to have a residual value of $4,000 and it is being amortized over eight years under the straight-line method. Calculate the amount that should be the charge for amortization of this equipment for the year ended December 31, 2018.

Question

Quizplus · Accepted Answer

The Answer of On January 1, 2011, Alabama Company purchased equipment at a cost of $40,000. The equipment was estimated to have a residual value of $4,000 and it is being amortized over eight years under the straight-line method. Calculate the amount that should be the charge for amortization of this equipment for the year ended December 31, 2018.

On January 1, 2011, Alabama Company Purchased Equipment at a Cost