Office furniture was purchased for $14,000. It had an estimated residual value of $2,000 and has a current carrying value of $6,000. Its depreciable cost must have been

Question

Quizplus · Accepted Answer

The depreciable cost is the cost of the asset minus its estimated residual value. 
So, depreciable cost = Cost of the asset - Estimated residual value
Given, 
Cost of the asset = $14,000 
Estimated residual value = $2,000 
Current carrying value = $6,000

Therefore, 
Depreciable cost = $14,000 - $2,000 = $12,000

Hence, the answer is (C) $12,000.

Office Furniture Was Purchased for $14,000