Question
ABC controls the following fixed-tangible assets: Machinery: acquisition cost equal to 52,000 with a useful life of five years and residual value 2,000, acquisition date:
ABC controls the following fixed-tangible assets:
Machinery: acquisition cost equal to 52,000 with a useful life of five years and residual value 2,000, acquisition date: 1/7/2018.
Equipment: acquisition cost equal to 6,000 with useful life of 10 years and zero residual value, acquisition date: 1/1/2019
ABC adopts the straight-line depreciation method. Assume that depreciation commences at the acquisition date. The carrying amount (book value) of ABCs fixed tangible assets as at 31/12/2022 is:
a. 10,600
b. None of the given answers is correct.
c. 9,800
d. 5,600
e. 4,800
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