You just purchased some equipment that will be depreciated using 20% reducing balance.The equipment cost €67,600.What will the book value of this equipment be at the end of three years should you decide to resell the equipment at that point in time?

Question

Quizplus · Accepted Answer

The correct answer is A because the book value of the equipment at the end of three years is €34,611.20. This is calculated by multiplying the original cost of the equipment by the reducing balance factor for three years, which is 0.512.

You Just Purchased Some Equipment That Will Be Depreciated Using