Depreciation Expense During 2008, Carter Company acquired three assets with the following costs,… 1 answer below »

Depreciation Expense During 2008, Carter Company acquired three assets with the following costs,… 1 answer below »

Depreciation Expense

During 2008, Carter Company acquired three assets with the following costs, estimated useful

lives, and estimated salvage values:

The company uses the straight-line method to depreciate all assets and computes depreciation to the

nearest month. For example, the computer system will be depreciated for six months in 2008.

Required

1. Compute the depreciation expense that Carter will record on each of the three assets for 2008.

2. Comment on the following statement: Accountants could save time and money by simply

expensing the cost of long-term assets when they are purchased. In addition, this would be

more accurate because depreciation requires estimates of useful life and salvage value.

 

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