Sargent Corporation bought equipment on January 1, 2018. 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 cost of the equipment minus its expected salvage value. 
Depreciable cost = Cost of equipment - Expected salvage value 
Depreciable cost = $360,000 - $60,000 
Depreciable cost = $300,000

Sargent Corporation Bought Equipment on January 1, 2018