The book value of the new machine on December 31 of the first year is $45,000.
<h3>What is book value?</h3>
The book value of an asset is the purchase cost less the accumulated depreciation.
Assume that the asset was purchased for $50,000 on January 1, and depreciation is at 10% per year.
Data and Calculations:
Cost of asset = $50,000
Depreciation rate = 10%
Depreciation expense = $5,000 ($50,000 x 10%)
Book value on December 31 = $45,000 ($50,000 - $5,000)
Thus, the book value of the new machine on December 31 of the first year is $45,000.
Learn more about depreciation methods at brainly.com/question/25530648