Murphy's Auto Co. purchased a large piece of equipment on January 1, 1998. The equipment is being depreciated, using the Straight-Line method, at the rate of $16,000 per year. On January 5, 2009 the book value of the machine was $190,000.
(a) What was the original cost of the machine?
(b) What will the book value be on December 31, 2010?

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The Answer of Murphy's Auto Co. purchased a large piece of equipment on January 1, 1998. The equipment is being depreciated, using the Straight-Line method, at the rate of $16,000 per year. On January 5, 2009 the book value of the machine was $190,000.
(a) What was the original cost of the machine?
(b) What will the book value be on December 31, 2010?