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The Andrews Company has just purchased $44,016,000 of plant and equipment that has an estimated useful life of 15 years. The expected salvage value...

The Andrews Company has just purchased $44,016,000 of plant and equipment that has an estimated useful life of 15 years. The expected salvage value at the end of 15 years is $4,401,600. What will the book value of this purchase (exclude all other plant and equipment) be after its third year of use? (Use FASB GAAP)

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Ans is d $33,538,000 Cost of Plant and Equipment    40,900,000.00 Salvage Value      4,090,000.00 Life in Years... View the full answer

3 comments
  • Ans is d $33,538,000 Cost of Plant and Equipment 40,900,000.00 Salvage Value 4,090,000.00 Life in Years 15.00 Depreciation each year = Cost - Salvage Value/ Life in years Depreciation each year =(40,900,000-4,090,000)/15 Depreciation each year =(36,810,000)/15 Depreciation each year =2,454,000 Depreciation for 3 Years (2,454,000*3) 7,362,000.00 Book Value after 3 Years (40,900,000 - 7,362,000) 33,538,000.00
    • princess_kim
    • Jul 20, 2016 at 9:09am
  • try this similar quiz and soln if it is helpful
    • princess_kim
    • Jul 20, 2016 at 9:09am
  • I don't have that answer to select. I have the following answers to selelct from:A)$31,691,520, B) 38,147,200, C) $36,093,120 or D) $35,212,800
    • monicagittens
    • Jul 20, 2016 at 9:21am

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