Comet Cleaning Co

question 106

Essay

Comet Cleaning Co.reported the following on its December 31,2016,balance sheet:
Equipment (at cost)$3,000,000
In a disclosure note,Comet indicates that it uses straight-line depreciation over six years and estimates salvage value as 10% of cost.Comet's equipment averages 4.5 years at December 31,2016.
Required:
What is the book value of Comet's equipment at December 31,2016?

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Definitions:

Accessory Organ

A supplementary organ that assists in the function of other organs within a system, such as the pancreas or gallbladder aiding in digestion.

Salivary Glands

Exocrine glands in the mouth that produce saliva, which begins the digestion process and keeps the mouth and digestive system moist.

Mastication

The process of chewing food in preparation for swallowing and digestion.

Segmental Contractions

Contraction of small segments of the intestinal tract that aids in mixing and propelling contents within the gastrointestinal system.