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irga5000 [103]
3 years ago
8

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

If the company uses the straightline depreciation​ method, calculate the current book value of the machine.
Business
1 answer:
Eva8 [605]3 years ago
7 0

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

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