Backhaul Machine movers depreciate their equipment over a 5-year-period using the straight-line depreciation method. On January...
Backhaul Machine movers depreciate their equipment over a 5-year-period using the straight-line depreciation method. On January 1, 2014, the equipment was purchased for $120,000. Its residual value is zero. What will be the net book value of the equipment by the end of December 2016?
Select one:
a. $72,000
b. $96,000
c. Not enough information is provided to calculate a value
d. $48,000
Homework Answers
Annual depreciation=(Cost-Salvage value)/Useful Life
=(120,000/5)=$24,000/year
Hence book value by the end of December 2016=Cost-Accumulated Depreciation
=120,000-(24000*3)
=$48000
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