Question 48 Assume Nationwide Communications purchased a new

Question 48 Assume Nationwide Communications purchased a new piece of equipment on January 1. 2014 that cost $5,200. The estimated useful life is five years and estimated residual value is $600. If Nationwide uses the A $2.000 8. $1,248. C$3.328 D.$1,104

Solution

Cost: $5,200.00, Salvage: $600.00
Life: 5 years, Convention: Full-Month
First Year: 12 months

Thus, answer is Option B, $ 1248

Year	Opening Carrying Amount	Depreciation	Acc. Depreciation	Carrying Amount
2014	$                              5,200.00	$                   2,080.00	$                           2,080.00	$                        3,120.00
2015	$                              3,120.00	$                   1,248.00	$                           3,328.00	$                        1,872.00
2016	$                              1,872.00	$                      749.00	$                           4,077.00	$                        1,123.00
2017	$                              1,123.00	$                      449.00	$                           4,526.00	$                           674.00
2018	$                                 674.00	$                         74.00	$                           4,600.00	$                           600.00