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Question On July 1 2011 Gadget Twin Manufacturing purchased new equipment from Acme Equipment Company that had a purchase price including sales tax of $86112 Acme charged $1920 to deliver the

Question: On July 1, 2011, Gadget Twin Manufacturing purchased new equipment from Acme Equipment Company that had a purchase price (including sales tax) of $86,112. Acme charged $1,920 to deliver the equipment and $7,680 to install it at Gadget Twin’s site. Gadget Twin’s accountant provided the payment for the equipment, delivery, and installation to Acme that day. Gadget Twin had its own master-level employees perform trial runs on the equipment. This took 9.6 hours, and those employees earn $30 per hour. During the trial runs, there was some damage to one of the walls beside the equipment. Gadget Twin’s maintenance staff repaired the wall. The cost for the maintenance wages was $96. All wages for trial runs and wall repair will be paid at the end of the following week. In the table to the below, calculate the equipment’s depreciation expense, the balance of accumulated depreciation, and the book value for each year the equipment is expected to be in service, using the straight-line method. Straight-Line Method Year Depreciation Expense Accumulated Depreciation Book Value 2011 $ $ $ 2012 $ $ $ 2013 $ $ $ 2014 $ $ $ 2015 $ $ $

May 21 2020 View more View Less

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