The equipment has an original estimated useful life of six years. Compute the book value of the equipment at January31 after the proper January adjustment is recorded:
A) $1,000.
B) $71,000.
C) $53,000.
D) $60,000.

Question

Quizplus · Accepted Answer

The book value is calculated by subtracting accumulated depreciation from the original cost. Assuming the equipment was purchased at the beginning of the year and using straight-line depreciation, one year of depreciation would be deducted from the original cost.

The Equipment Has an Original Estimated Useful Life of Six