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Financial Accounting

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Balance Sheet PPE SYD

FINACT-SME4LK

Spirit Corporation purchased a piece of equipment to be used in its operations for \$400,000 on May 1, 2017 with an estimated salvage value of \$25,000 and a 4-year useful life. Spirit records partial-year depreciation on equipment and uses the sum-of-the-years-digits method.

What is the amount of net equipment as presented on the balance sheet at the end of 2018?

A

\$300,000

B

\$150,000

C

\$175,000

D

\$225,000