Mean Beans, a local coffee shop, has the following assets on January 1, 2023. Mean Beans prepares annual financial statements and has a December 31, 2023 year-end. The company’s depreciation policy is to use the straight-line method to depreciate its assets.
On January 1, 2023, purchase equipment costing $20,200 with an estimated life of five years. Mean Beans will scrap the equipment after five years for $0.
On July 1, 2023, purchase furniture (tables and chairs) costing $21,500 with an estimated life of ten years. Mean Beans estimates that it can sell the furniture for $4,900 after ten years.
On January 1, 2021, Mean Beans had purchased a car costing $19,250 with an estimated life of eight years. Mean Beans estimates that it can sell the car for $3,850 after eight years.
