The balance in the Accumulated Depreciation - Machine account at the end of the year is $10,000. The book value of the machine is $30,000. The cost of the machine was:

Question

Quizplus · Accepted Answer

The book value of an asset is equal to its cost minus its accumulated depreciation. Therefore, the cost of the machine is equal to its book value plus its accumulated depreciation, which is $30,000 + $10,000 = $40,000.

The Balance in the Accumulated Depreciation - Machine Account at the End