jaclyntompkins
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a machine for $152,000. Its estimated life is 10 years with a residual value of $9,000. Using the straight-line method, what is the book value of the machine at the end of year 2?

Respuesta :

Aliwohaish12
100/10 year=10% rate of depreciation per year
With straight line method we exclude the residual value and then calculate the depreciation
152000-9000=143000
The amount of depreciation after 2 years
143,000×0.1×2=28,600
So the book value is

143,000−28,600=114,400

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