Answer:
Book value= $96,000
Explanation:
Giving the following information:
Pearson Company bought a machine on January 1, 2014. The machine cost $144,000 and had an expected salvage value of $24,000. The life of the machine was estimated to be 5 years.
Annual depreciation= (original cost - salvage value)/estimated life (years)
Straight-line depreciation= (144,000 - 24,000)/5= 24,000
Accumulated depreciation= 24,000*2= 48,000
Book value= 144,000 - 48,000= 96,000
