Adjax bought a machine for $86,000. Its estimated life is 10 years with a residual value of $6,000. Using the straight-line method, what is the book value of the machine at the end of year 2?

Name: Adjax bought a machine for $86,000. Its estimated life is 10 years with a residual value of $6,000. Using the straight-line method, what is the book value of the machine at the end of year 2?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

$86,000 - $6,000 = $80,000 × .1 = $8,000; $86,000 - $8,000 - $8,000 = $70,000.

Adjax Bought a Machine for $86,000