Malvern Contractors purchased a new bull-dozer for $85,000. Shipping charges were $1,500 and other costs associated with the bull-dozer amounted to $925. The bull-dozer is expected to last 5 years and has a residual value of $10,000. Malvern elects to use the straight-line method of depreciation.
A)What is the amount of total depreciation?
B)What is the amount of the annual depreciation?

Question

Quizplus · Accepted Answer

The Answer of Malvern Contractors purchased a new bull-dozer for $85,000. Shipping charges were $1,500 and other costs associated with the bull-dozer amounted to $925. The bull-dozer is expected to last 5 years and has a residual value of $10,000. Malvern elects to use the straight-line method of depreciation.

Malvern Contractors Purchased a New Bull-Dozer for $85,000