Bichon Company purchased equipment for $6,720 on December 1, 2022. It is estimated that annual depreciation on the equipment will be $1,680. The equipment will be reported on Bichon Company's balance sheet at December 31, 2022 at a book value of

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The equipment was purchased on December 1, 2022, so it has been in use for only one month. The annual depreciation is $1,680, so the depreciation for one month is $1,680/12 = $140. The book value of the equipment at December 31, 2022 is the original cost minus the depreciation for the month, which is $6,720 - $140 = $6,580.

Bichon Company Purchased Equipment for $6,720 on December 1, 2022