Hank's Tax Planning Service bought communications equipment for $7,200 on January 1,2012.It has an estimated useful life of 5 years.Hank records depreciation monthly
-.As of June 30,2012,Hank's balance sheet will show book value for this equipment of:
A) $6,480.
B) $7,200.
C) $120.
D) $720.

Question

Quizplus · Accepted Answer

A) Calculations: $7,200/60 = $120 × 6 =$720; $7,200 - $720 = $6480

Hank's Tax Planning Service Bought Communications Equipment for $7,200 on January