The following items are taken from the financial statements of Gray's Postal Service for the year ending December 31, 2021: What is the book value of the equipment at December 31, 2021?

Question

The following items are taken from the financial statements of Gray's Postal Service for the year ending December 31, 2021:  What is the book value of the equipment at December 31, 2021?

Quizplus · Accepted Answer

The book value of equipment is the original cost of the equipment minus accumulated depreciation. From the financial statements, we can see that the original cost of equipment is $260,000 and the accumulated depreciation is $78,000. Therefore, the book value of the equipment is $182,000 ($260,000 - $78,000 = $182,000).

The Following Items Are Taken from the Financial Statements of Gray's