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sertanlavr [38]
3 years ago
10

The Baldwin Company has just purchased $40,900,000 of plant and equipment that has an estimated useful life of 15 years. The exp

ected salvage value at the end of 15 years is $4,090,000. What will the book value of this purchase (exclude all other plant and equipment) be after its third year of use
Business
1 answer:
Neko [114]3 years ago
6 0

Answer:

$38,448,000

Explanation:

Calculation to determine What will the book value of this purchase

First step

Depreciation = (cost - salvage)/useful life

Depreciation= (40,900,000 - 4,090,000 )/15

Depreciation=36810000/15

Depreciation=2454000

Now let determine the

Book value=Cost -Depreciation

Book value=$40,900,000-$2,454,000

Book value=$38,448,000

Therefore the book value of this purchase is$38,448,000

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