Sargent Corporation bought equipment on January 1, 2021.The equipment cost $360,000 and had an expected salvage value of $60,000.The life of the equipment was estimated to be six years.The depreciable cost of the equipment is

Question

Quizplus · Accepted Answer

The depreciable cost of the equipment is the original cost of the equipment minus the expected salvage value. Therefore, the depreciable cost of this equipment is $360,000 - $60,000 = $300,000.

Sargent Corporation Bought Equipment on January 1, 2021