A company purchased medical equipment for $100,000 on January 1, 2009. The company determined that the yearly depreciation expense is $10,000. At December 31, 2012, the book value of the asset is:

Question

Quizplus · Accepted Answer

To calculate the book value of the asset at December 31, 2012, we need to subtract the accumulated depreciation from the original cost of the asset.
Depreciation for four years= $10,000 * 4 = $40,000
Book value= Cost - Accumulated Depreciation
Book value= $100,000 - $40,000
Book value= $60,000
Therefore, the book value of the asset at December 31, 2012, is $60,000.

A Company Purchased Medical Equipment for $100,000 on January 1