Computer Equipment Was Acquired at the Beginning of the Year

question 117

Essay

Computer equipment was acquired at the beginning of the year at a cost of $45,000 that has an estimated residual value of $3,000 and an estimated useful life of 4 years. Determine the (a) depreciable cost, (b) straight-line rate, and (c) annual straight-line depreciation.

Understand the application and differentiation of the law of finds and the law of salvage regarding abandoned property.

Comprehend the factors determining title to abandoned or unclaimed property.

Analyze legal ownership and title disputes involving stolen or found property.

Identify the conditions under which conditional gifts must be returned.