18. If a company had equipment with an original cost of $125,000 and had accumulated depreciation...

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18. If a company had equipment with an original cost of $125,000 and had accumulated depreciation to date of $37,500, what wo

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Answer 1

Answer #1

18.

Original cost of equipment: $ 125,000

Accumulated depreciation: $ 37,500

Hence,

Begining of the year book value: Original Cost - Accumilated depreciation

Begining of the year book value: $ 125,000 - $ 37,500

Begining of the year book value: $ 87,500

Therefore, depreciation : Begining book value * 15%

Depreciation: $ 87,500 * 15% = $ 13,125

Correct option is "B" i.e. 13,125

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Answer 2

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