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AURORKA [14]
1 year ago
5

If equipment cost $20,000 and accumulated depreciation amounts to $6,000, the book value of the equipment is?

Mathematics
1 answer:
Rina8888 [55]1 year ago
8 0

The book value of the equipment is $14000

Given,

equipment cost = $20,000

depreciation amounts =  $6,000

book value of the equipment = equipment cost - depreciation cost

= 20000 - 6000

= $14000

<h3>What Are Depreciation Expenses?</h3>

Depreciation expense, on the other hand, is the amortized portion of the cost of the business's fixed assets during a certain period. Depreciation expense is recognized in the income statement as a non-cash expense that reduces the  net income or profit of the business. For accounting purposes, depreciation expense is debited and  accumulated depreciation is credited.

Depreciation expenses are treated as non-cash expenses because periodic monthly amortization is  not involved in cash transactions.

To learn more about depreciation amounts from given link

brainly.com/question/1287985

#SPJ4

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