Business, 15.04.2020 20:06 tonimgreen17p6vqjq
On January 1, 2019, Romero Company purchased equipment for $320,000. The equipment was assigned an $18,000 residual value and a 16-year life. Romero Company will use the straight-line method to depreciate the equipment. On January 1, 2027, Romero Company spent $41,000 to overhaul the equipment. This capital expenditure resulted in Romero Company changing the life of the equipment from 16 years to 30 years and adjusting the residual value to be $17,500 at the end of the 30 years. Calculate the book value of the equipment at December 31, 2030.
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