What does the cost of land include?
- What is Depreciation?
- On January 1, 2013, Hilton Company purchased equipment for $300,000, and
installation and testing costs totaled $35,000. The equipment has an estimated
useful life of 10 years and an estimated salvage value of $25,000. If Hilton uses the straight-line depreciation method, What is the depreciation expense for 2013?
- In Question 3, if the equipment were purchased on July 1, 2013 and Hilton used double declining balance method, what would be the depreciation expense for 2013?
- If a company sells equipment costing $50,000 with accumulated depreciation of $15,000 for $40,000, what is the gain realized?
- Write the journal entry to record the sale in Question 5.