On January 1, 2022, Superfuzz Company purchased equipment for $40,000.The company is depreciating the equipment at a rate of $800 per month.The book value of the equipment at December 31, 2022 is

Question

Quizplus · Accepted Answer

To calculate the book value of the equipment at December 31, 2022, we need to calculate the total depreciation expense for the year and subtract it from the original cost of the equipment.

Total Depreciation Expense for the year:
$800/month x 12 months = $9,600

Book value at December 31, 2022:
$40,000 (original cost) - $9,600 (depreciation expense) = $30,400

Therefore, the correct answer is Choice C) $30,400.

On January 1, 2022, Superfuzz Company Purchased Equipment for $40,000