Ayayai Corp. bought equipment on January

1, 2017. The equipment cost $470000 and

had an expected salvage value of $70000.

The life of the equipment was estimated to

be 6 years. The depreciable cost of the

equipment is

The depreciable cost of the equipment is $400,000

Explanation:

In this question, we are tasked with calculating the depreciable cost of the equipment bought

To calculate this, we simply engage the use of a mathematical relation

Mathematically;

Depreciable cost = Original Cost - Salvage value

From the question, the original cost is $470,000

The salvage value = $70,000

Inputing these values into the equation, we have

Depreciable cost = $470,000 - $70,000 = $400,000