Office furniture was purchased for $45,000.It had an estimated residual value of $7,000 and has a current carrying value of $9,000.Its depreciable cost must have been

Name: Office furniture was purchased for $45,000.It had an estimated residual value of $7,000 and has a current carrying value of $9,000.Its depreciable cost must have been
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Depreciable cost = (purchase price) - (residual value) = $45,000 - $7,000 = $38,000. 
Carrying value is not relevant for calculating depreciable cost.

Office Furniture Was Purchased for $45,000