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A Company Purchases Equipment on 1 January 2016

Question 38

Multiple Choice

A company purchases equipment on 1 January 2016. The following costs are incurred:
A company purchases equipment on 1 January 2016. The following costs are incurred: The equipment has an estimated life of five years and no salvage value. What is the depreciation expense in 2016 if the straight-line method is used? A) $28 000 B) $36 000 C) $40 000 D) $30 000
The equipment has an estimated life of five years and no salvage value. What is the depreciation expense in 2016 if the straight-line method is used?


A) $28 000
B) $36 000
C) $40 000
D) $30 000

Correct Answer:

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