The equipment is $6000, installation and freight are $500 and $100 respectively. when I entry depreciation. Should I use $6000 or $6600 as equipment value?

If you needed to liquidate the equipment, you would base that off of the $6000 mark. So the install and freight can not count in depreciation.

Equipment depreciation 3 steps

1.Look at the company check register or go through receipts to find out how much the equipment cost.

2.Decide how long the equipment will be used.

3.Divide the cost of the equipment by the number of years the business owner expects the equipment to last to calculate straight-line depreciation.

Wow......Three wrong answers.

$6600

Freight, Installation and Sales Taxes (if applicable) are all Capitalized with the Equipment.

6000

You can not include install

Use the 6000.00