Question

The andrews company has just purchased $46,512,000 of plant and equipment that has an estimated useful life of 15 years. The expected salvage value at the end of 15 years is $4,651,200. What will the accumulated depreciation expense for this purchase (exclude all other plant and equipment) be after its second year of use? (use fasb gaap)

Answer 1

Answer:

(cost of asset-scrap value)/Estimated life of asset

$= \frac{46512000 - 4651200}{15} \\ \\ = \frac{41860800}{15} \\ \\ = \frac{8372160}{3} \\ \\ = 2790720$