If it was recorded that a piece of equipment had a book value of 49,000. Was purchased for 74,000. Had a salvage value of 4,000. And 14 yrs of useful life. How long has the company owned the equipment?
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If it was recorded that a piece of equipment had a book value of 49,000. Was purchased for 74,000. Had a salvage value of 4,000. And 14 yrs of useful life. How long has the company owned the equipment?
I assume you're using straight-line depreciation so:
74,000-4,000=70,000 your depreciation base
70,000/14yrs = 5,000 depreciation per year
74,000-49,000= 25,000 accumulated depreciation
25,000/5,000= 5 years
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