On January 1, 2022, M.Johanson Company purchased equipment for $54,000.The company is depreciating the equipment at the rate of $750 per month.The book value of the equipment at December 31, 2022 is:
A)$0.
B)$9,000.
C)$45,000.
D)$54,000.

Question

Quizplus · Accepted Answer

The equipment is depreciated at $750 per month. Over 12 months, the total depreciation is $750 * 12 = $9,000. The book value at December 31, 2022, is the original cost minus accumulated depreciation: $54,000 - $9,000 = $45,000.