Sargent Corporation bought equipment on January 1, 2015. The equipment cost $360,000 and had an expected salvage value of $60,000. The life of the equipment was estimated to be 6 years. The depreciable cost of the equipment is

Question

Quizplus · Accepted Answer

The depreciable cost of the equipment is the difference between the cost of the equipment and its salvage value, which is $360,000 - $60,000 = $300,000.

Sargent Corporation Bought Equipment on January 1, 2015