Welcome Corporation purchased equipment for $267,000.The equipment is estimated to have a useful life of 10 years and a residual value of $27,000.Welcome uses straight-line depreciation and has a December 31 year end.On January 1,2018,the net book value of the equipment is $211,000.What is the date of purchase of the equipment?

Question

Quizplus · Accepted Answer

D)267,000 - 27,000 = 240,000 / 10 = 24,000 / 12 = 2,000 per month
267,000 - 211,000 = 56,000 / 2,000 = 28 months accumulated depreciation
Purchase date is September 1,2015

Welcome Corporation Purchased Equipment for $267,000