Problem
At December 31, 2017, Grand Company reported the following as plant assets.
|
Land
|
|
$ 4,180,000
|
|
Buildings
|
$27,310,000
|
|
|
Less: Accumulated depreciation-buildings
|
12,890,000
|
14,420,000
|
|
Equipment
|
47,470,000
|
|
|
Less: Accumulated depreciation-equipment
|
4,530,000
|
42,940,000
|
|
Total plant assets
|
|
$61,540,000
|
During 2018, the following selected cash transactions occurred.
May 1 Sold equipment that cost $1,050,000 when purchased on January 1, 2014. The equipment was sold for $630,000.
How to calculate the depreciation?