Viva, Inc. bought machine X for two years ago. The machine had no residual value and had an estimated useful life of 10 years.

Question

2 years ago

8

If the company uses the straightline depreciation method, calculate the current book value of the machine.

1 answer:

Eva8 [605] · Answer 1 · 2022-10-08T17:40:59+03:00

Answer:

the current book value of the machine is $14,400

Explanation:

The computation of the current book value of the machine is shown below:

The Annual Depreciation is

= (Cost - Salvage Value) ÷ (Useful Life)

= ($18,000 - 0) ÷ 10 years

= $1,800

Now the depreciation for two years is

= $1,800 × 2

= $3,600

So, the current book value is

= Cost - accumulated depreciation

= $18,000 - $3,600

= $14,400

Hence, the current book value of the machine is $14,400

​Viva, Inc. bought machine X for two years ago. The machine had no residual value and had an estimated useful life of 10 years.