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Can someone explain where the number 2,750 comes from in the book value(BV) formula part? Question 7-8 A machine with an original cost of $6,000,
Can someone explain where the number 2,750 comes from in the book value(BV) formula part?
Question 7-8 A machine with an original cost of $6,000, an expected useful life of 5 years, and salvage value of $500, is depreciated by the straight line method. The machine was purchased on January 1, 2015. On July 1, 2017, the machine is sold for $2,500. The entry to record the sale will include? A) a loss of $500 SL = (6,000 - 500) / 5yrs = 1,100/yr B) a gain of $500 BV = Cost - Acc Depr = 6,000 - 2,750 C) a loss of $750 3,250 D) a gain of $750 Cash Rec from sale, BV = Gain or (Loss) = 2,500 3,250 = (750) LOSS = = =Step by Step Solution
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