Deer and Fishing Company owns $6,000 of office furniture. Accumulated Depreciation had a balance of $3,000 before recording this year's depreciation. Depreciation Expense for the current year is $1,000. What is the book value at the end of the year?

Question

Quizplus · Accepted Answer

Book value is calculated by subtracting accumulated depreciation from the original cost of the asset. Therefore, the book value at the end of the year would be $6,000 (original cost) - $3,000 (accumulated depreciation before the current year) - $1,000 (depreciation expense for the current year) = $2,000.

Deer and Fishing Company Owns $6,000 of Office Furniture