On January 1, 2022, Pulque Company purchased equipment for $51,000. The company is depreciating the equipment at the rate of $850 per month. The book value of the equipment at December 31, 2022 is

Question

Quizplus · Accepted Answer

To find out the book value of the equipment at December 31, 2022, we need to calculate the depreciation expense for the year.

Depreciation expense for the year = $850/month x 12 months = $10,200

The book value of the equipment at December 31, 2022 is the original cost of $51,000 minus the accumulated depreciation of $10,200.

Book value = $51,000 - $10,200 = $40,800

Therefore, the correct answer is C.

On January 1, 2022, Pulque Company Purchased Equipment for $51,000