On January 1,2011,Tiler Company purchased equipment that cost $30,000.The equipment has an estimated useful life of 6 years and an estimated salvage value of $3,000.
Required:
1.Using the straight-line method,complete the chart below:
2.Explain why long-term assets must be depreciated.
3.Explain why land is NOT depreciated while assets such as equipment are depreciated.

Question

On January 1,2011,Tiler Company purchased equipment that cost $30,000.The equipment has an estimated useful life of 6 years and an estimated salvage value of $3,000.
Required:
1.Using the straight-line method,complete the chart below:
  2.Explain why long-term assets must be depreciated.
3.Explain why land is NOT depreciated while assets such as equipment are depreciated.

Quizplus · Accepted Answer

The Answer of On January 1,2011,Tiler Company purchased equipment that cost $30,000.The equipment has an estimated useful life of 6 years and an estimated salvage value of $3,000.
Required:
1.Using the straight-line method,complete the chart below:
  2.Explain why long-term assets must be depreciated.
3.Explain why land is NOT depreciated while assets such as equipment are depreciated.

On January 1,2011,Tiler Company Purchased Equipment That Cost $30,000