On January 1, 2013, Masters and Masters Company purchased equipment for € 45,000. The company is depreciating the equipment at the rate of € 1,050 per month. The book value of the equipment at December 31, 2013 is

Question

Quizplus · Accepted Answer

To find the book value at the end of December 31, 2013, we need to subtract the accumulated depreciation from the original cost.

Accumulated depreciation = (depreciation per month) x (number of months)

Number of months from January 1 to December 31 is 12.

Accumulated depreciation = €1,050 x 12 = €12,600

Book value = Cost - Accumulated depreciation

Book value = €45,000 - €12,600 = €32,400

Therefore, the answer is C.

On January 1, 2013, Masters and Masters Company Purchased Equipment