On January 1, 2011, Masters and Masters Company purchased equipment for € 30,000.The company is depreciating the equipment at the rate of € 700 per month.The book value of the equipment at December 31, 2011 is

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The equipment is depreciated at €700 per month. Over 12 months, the total depreciation is €8,400 (€700 x 12). The book value at December 31, 2011, is the original cost (€30,000) minus the accumulated depreciation (€8,400), which equals €21,600.

On January 1, 2011, Masters and Masters Company Purchased Equipment