Office furniture was purchased for $28,000.It had an estimated residual value of $4,000 and has a current carrying value of $12,000.Its depreciable cost must have been

Question

Quizplus · Accepted Answer

The depreciable cost is equal to the original cost of an asset minus its residual value. We know that the original cost of the office furniture was $28,000, and its estimated residual value is $4,000. Therefore, the depreciable cost is $28,000 - $4,000 = $24,000. The current carrying value of $12,000 is not relevant to the calculation of the depreciable cost.

Office Furniture Was Purchased for $28,000