Crane Company purchased a machine on July 1, 2018, for $33,040
Question # 00528276
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Updated on: 05/16/2017 02:13 AM Due on: 05/16/2017
Crane Company purchased a machine on July 1, 2018, for $33,040. Crane paid $236 in title fees and county property tax of $148 on the machine. In addition, Crane paid $590 shipping charges for delivery, and $561 was paid to a local contractor to build and wire a platform for the machine on the plant floor. The machine has an estimated useful life of 6 years with a salvage value of $3,540.
Determine the depreciation base of Crane’s new machine. Crane uses straight-line depreciation.
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Rating:
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Solution: Crane Company purchased a machine on July 1, 2018, for $33,040