Mitchell Corporation bought equipment on January 1, 2022.The equipment cost $300,000 and had an expected salvage value of $50,000.The life of the equipment was estimated to be 6 years.The depreciable cost of the equipment is
A)$300,000.
B)$250,000.
C)$50,000.
D)$41,667.

Question

Quizplus · Accepted Answer

The depreciable cost is calculated as the cost of the equipment minus the salvage value: $300,000 - $50,000 = $250,000.

Mitchell Corporation Bought Equipment on January 1, 2022