Victory Company purchases office equipment at the beginning of the year at a cost of $15,000.The machine is depreciated using the straight-line method.The machine's useful life is estimated to be 7 years with a $1,000 salvage value.The book value at the end of 7 years is:

Question

Quizplus · Accepted Answer

The book value at the end of 7 years is the salvage value, which is $1,000, since straight-line depreciation would have reduced the machine's value to its salvage value over its useful life.

Victory Company Purchases Office Equipment at the Beginning of the Year