Determining Fixed Asset's Book Value The balance in the equipment account is $3,150,000, and the balance...

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Determining Fixed Assets Book Value The balance in the equipment account is $3,150,000, and the balance in the accumulated d

business accounting

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Answer 1

Answer #1

a.

Book value of the equipment = Balance in equipment account - Accumulated depreciation

= $3,150,000 - $2,075,000

= $1,075,000

b.

No, because depreciation is an allocation of the cost of the Equipment to the periods benefiting from its use.

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Answer 2

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