AEcounting Principles (BA llus&able; eTextbook nent 23 PM/ Remaining: 48 min. ME

Question

AEcounting Principles (BA llus&able; eTextbook nent 23 PM/ Remaining: 48 min. MESSAGE MY INSTRUCTORFULL SCREEN PRINTER VERSION BACK CALCULATOR MESSAGE MY INSTRUCTOR NEX Multiple Choice Question 129 Pharoah Company bought equipment for $420000 on January 1, 2016. Pharoah estimated the useful life to be 5 years with no salvage value, and the straight-line method of depreciation will be used. On January 1, 2017, Pharoah decides that the business will use the equipment for a total of 7 years. for 2017? $48000. O $56000. $70000. $84000 SHOW SOLUTION Question Attempts: 0 of 1 used SUBMIT ANSWER SAVE FOR LATER Version 4.24.3.3 All Rights Reserved. A Division of en/shared/assignment/test/agist.uni?id

Explanation / Answer

Depreciation=(Cost-Residual value)/USeful life

=(420,000/5)=$84000/year

Hence book value as on beginning of year 2017=420,000-84000=$336000

Hence revised depreciation=$336000/6

=$56000(B)

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