申論題

一、You have been assigned to examine the financial statements of Zarle Company for the year ended December 31, 2019. You discover the following situations.

8. A large piece of equipment was purchased on January 3, 2019, for $40,000 and was charged to Maintenance and Repairs Expense. The equipment is estimated to have a service life of 8 years and no residual value. Zarle normally uses the straight-line depreciation method for this type of equipment.