Farley Mills purchased new machinery at the beginning of Year 1for $200,000.The machines had an estimated life of 5 years,an estimated residual value of $25,000,and were depreciated using the straight-line method.At the beginning of Year 2,the machines were sold for $150,000 because management was unhappy with their performance.
Determine the following amounts:
A) Book value of the machinery at the end of Year 1.

Question

Farley Mills purchased new machinery at the beginning of Year 1for $200,000.The machines had an estimated life of 5 years,an estimated residual value of $25,000,and were depreciated using the straight-line method.At the beginning of Year 2,the machines were sold for $150,000 because management was unhappy with their performance.
Determine the following amounts:
 A) Book value of the machinery at the end of Year 1.

Quizplus · Accepted Answer

The Answer of Farley Mills purchased new machinery at the beginning of Year 1for $200,000.The machines had an estimated life of 5 years,an estimated residual value of $25,000,and were depreciated using the straight-line method.At the beginning of Year 2,the machines were sold for $150,000 because management was unhappy with their performance.
Determine the following amounts:
 A) Book value of the machinery at the end of Year 1.

Farley Mills Purchased New Machinery at the Beginning of Year