2) The cost of a piece of equipment is $80,000; it has a 5 year...
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Accounting
2) The cost of a piece of equipment is $80,000; it has a 5 year life, and an estimated salvage value of $5,000. a) What is the amount of depreciation expense for the first full year the company owns the equipment if the company adopts the straight-line method? b) What is the journal entry the company would make to record depreciation expense? c) What is the book value of the equipment after it has been owned for 1 full year (hint use part a)? d) What is the amount of depreciation for the first year if the company did not purchase the equipment until July 1st and uses the straight-line method? e) What is the book value of the equipment after it has been owned for 1 1/2 years
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