Equipment was purchased for $117,000.It had an estimated residual value of $18,000 and has a current carrying value of $75,000.Its depreciable cost must have been

Question

Quizplus · Accepted Answer

Depreciable cost is the original cost of the asset minus its estimated residual value. Therefore, depreciable cost = $117,000 - $18,000 = $99,000. The carrying value of the asset ($75,000) does not impact the calculation of the depreciable cost.

Equipment Was Purchased for $117,000