Question

Cullumber Company owns delivery equipment that cost $49,700 and has accumulated depreciation of $24,800 as of July 30, 2020. On that date, Cullumber disposes of this equipment. For parts b - d below, enter D for debit or C for credit in the first box and the amount in the second box. What is the net book value of the equipment on July 30, 2020

Answer 1

Answer:

The net book value of the equipment on July 30, 2020 is $24,900.

Explanation:

The net book value can be calculate using the following formula:

Net book value =  Cost of the equipment - Accumulated depreciation …………………… (1)

Where:

Cost of the equipment = $49,700

Accumulated depreciation = $24,800

Substituting the values into equation (1), we have:

Net book value = $49,700 - $24,800 = $24,900

Therefore, the net book value of the equipment on July 30, 2020 is $24,900.