Question

Amigos, Inc., purchased a used piece of heavy equipment for $30,000. Delivery of the equipment to Amigos’s business site cost $750. Expenditures to recondition the equipment and prepare it for use totaled $2,230. The maintenance for the first year Amigos owned the equipment was $1,370. Determine the cost that is the basis for calculating annual depreciation on the equipment.

Answer 1

Depreciable value= $32,980

Step-by-step explanation:

Giving the following information:

Amigos, Inc., purchased a used piece of heavy equipment for $30,000. The delivery of the equipment to Amigos’s business site cost $750. Expenditures to recondition the equipment and prepare it for use totaled $2,230. The maintenance for the first year Amigos owned the equipment was $1,370.

Depreciable value= 30,000 + 750 + 2,230= $32,980