Essay
On January 1, 2016, Paradise Hotels and Spa's purchased a machine. Residual value was estimated to be $13,000 after a 15-year life. Using sum-of-the-years'-digits depreciation, the company recorded $8,500 depreciation expense in 2018.
Required:
Compute the cost of the machine.
Correct Answer:
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13/120 × X = $8,500
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