Question 10 of 16
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Ayayai's Cove Marina has a September 30 year end. On August 1, 2024, it purchased a new marine crane to assist it with the autumn
pull out of the boats in the marina. The physical life of the crane is expected to be 15 years, but Ayayai plans to keep the crane for only
10 years as this represents the asset's useful life to the company and at which point they will scrap it and buy a newer model. The
original cost of the crane is $49200. The amount of depreciation expense that Ayayai should show in its financial statements for the
year ended September 30, 2024, is
? $547.
? $820.
? $4920.
? $3280.