On January 1,2011,Gamma Company purchased equipment that cost $30,000.The equipment has an estimated useful life of 10 years and an estimated salvage value of $5,000.
Required:
1.Use the double-declining balance method to complete the chart below:
2.Explain why long-term assets must be depreciated.
3.Explain why land is NOT depreciated when assets like equipment are.

Question

On January 1,2011,Gamma Company purchased equipment that cost $30,000.The equipment has an estimated useful life of 10 years and an estimated salvage value of $5,000.
Required:
1.Use the double-declining balance method to complete the chart below:
  2.Explain why long-term assets must be depreciated.
3.Explain why land is NOT depreciated when assets like equipment are.

Quizplus · Accepted Answer

The Answer of On January 1,2011,Gamma Company purchased equipment that cost $30,000.The equipment has an estimated useful life of 10 years and an estimated salvage value of $5,000.
Required:
1.Use the double-declining balance method to complete the chart below:
  2.Explain why long-term assets must be depreciated.
3.Explain why land is NOT depreciated when assets like equipment are.

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