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1. The foundation reported property and equipment worth $2,144,389 in 2012 and $1,602,342 in 2013. Assume the foundation purchased $300,000 worth of computer equipment in 2013 but acquired no other new property, plant, or equipment. How much was its depreciation expense for 2013? According to Note 1 of the financial statements, the foundation assigns computer equipment a five year useful life. Using this life, the depreciation expense for the equipment is $60,000 (300,000 / 5), and total expense would be as follows:
2012 Depreciation Expense from the statement of functional expense 668,504
2013 Computer Equipment (300,000 / 5 years) 60,000
Total depreciation expense 728,504...
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