Joseph Jewelers purchased display shelves on March 1 for $36,000. If this asset has an estimated useful life of five years, what is the book value of the display shelves on April 30?

Question

Quizplus · Accepted Answer

The asset depreciates over 5 years, so monthly depreciation is $36,000 / 60 months = $600. After 2 months (March and April), depreciation is $1,200. The book value is $36,000 - $1,200 = $34,800.

Joseph Jewelers Purchased Display Shelves on March 1 for $36,000