Business, 24.07.2020 18:01 UaRemomGAY

On January 1, 2010, Dragon Company paid cash to purchase an automobile. The car dealer gave Dragon a $1,000 cash discount off the $19,000 list price. However, Dragon paid an additional $2,000 to equip the car with a more luxurious interior so it would have greater appeal. Dragon Company expected the car to have a five-year useful life and a $5,000 salvage value. Dragon also expected to use the car for 150,000 miles before disposing of it. Dragon used the car, and it was driven 50,000 / 10,000 / 40,000 / 30,000 / 20,000 miles during each use year respectively. Dragon sold the car on January 1, 2015, for $4,500 cash. Required:
a. What is the cost of the car that Dragon Company will record?
b. Under the straight line method of depreciation, how much depreciation expense will Dragon have each year of the car's use?

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On January 1, 2010, Dragon Company paid cash to purchase an automobile. The car dealer gave Dragon a...

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