A machine was purchased for $50,000.It has a current carrying value of $32,500 and had a depreciable cost of $45,000.Its estimated residual value must have been
A)$5,000.
B)$12,500.
C)$17,500.
D)impossible to determine from the facts given.

Question

Quizplus · Accepted Answer

The estimated residual value is the difference between the original cost ($50,000) and the depreciable cost ($45,000), which equals $5,000.

A Machine Was Purchased for $50,000