Prentice Company purchased a depreciable asset for $200,000.The estimated salvage value is $20,000, and the estimated useful life is 10 years.The straight-line method will be used for depreciation.What is the depreciation base of this asset?

Question

Quizplus · Accepted Answer

The depreciation base is the cost of the asset minus the estimated salvage value, which in this case would be $200,000 - $20,000 = $180,000.

Prentice Company Purchased a Depreciable Asset for $200,000