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17 September, 07:28

Brinkman Corporation bought equipment on January 1, 2007. The equipment cost $90,000 and had an expected salvage value of $15,000. The life of the equipment was estimated to be 6 years. The depreciable cost of the equipment isa. $90,000b. $75,000c. $50,000d. $12,500

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  1. 17 September, 10:12
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    The correct answer is B.

    Explanation:

    Giving the following information:

    The equipment cost $90,000 and had an expected salvage value of $15,000. The life of the equipment was estimated to be 6 years.

    Depreciable cost = purchase price - salvage value

    Depreciable cost = 90,000 - 15,000 = $75,000
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