Comet Cleaning Co

question 69

Essay

Comet Cleaning Co. reported the following on its December 31, 2013, 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, 2013.
Required:
What is the book value of Comet's equipment at December 31, 2013?

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Definitions:

Wireless Network

A telecommunications network that enables devices to connect and communicate wirelessly over radio waves without the need for a physical connection.

Wireless Standards

Protocols established to ensure interoperability and compatibility among wireless devices, such as Wi-Fi (IEEE 802.11) and Bluetooth standards.

802.11n

An IEEE wireless standard that uses both the 2.4 and 5 GHz ranges and that supports speeds up to 600 Mb/s.

NAT

Network Address Translation, a method used in networks to remap one IP address space into another by modifying network address information in the IP header of packets in transit.