Comet Cleaning Co. reported the following on its December 31, 2013, balance sheet:
Equipment (at cost)…..$3,000,000
In a disclosure note, Comet indicates that it uses straight-line depreciation over six years and estimates salvage value as 10% of cost. Comet's equipment averages 4.5 years at December 31, 2013.
Required:
What is the book value of Comet's equipment at December 31, 2013?

Question

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The Answer of Comet Cleaning Co. reported the following on its December 31, 2013, balance sheet:
Equipment (at cost)…..$3,000,000
In a disclosure note, Comet indicates that it uses straight-line depreciation over six years and estimates salvage value as 10% of cost. Comet's equipment averages 4.5 years at December 31, 2013.
Required:
What is the book value of Comet's equipment at December 31, 2013?