Sargent Corporation bought equipment on January 1 2017. The equipment cost $360000 and had an expected salvage value of $60000. 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 calculated by subtracting the salvage value from the cost of the equipment. Therefore, $360,000 (cost) - $60,000 (salvage value) = $300,000.

Sargent Corporation Bought Equipment on January 1 2017