Answer:
Book value= $206,400
Explanation:
Giving the following information:
The equipment cost $300,000 and had an expected salvage value of $40,000.
First, we need to calculate the accumulated depreciation:
Annual depreciation= 2*[(book value)/estimated life (years)]
Year 1= 2*[(300,000 - 40,000)/10]= 52,000
Year 2= 2*[(260,000 - 52,000)/10]= 41,600
Book value= purchase price - accumulated depreciation
Book value= 300,000 - 93,600= $206,400
