Question
Company purchased a machine for $9,800 on January 1, 2019. The machine has been depreciated using the straight-line method assuming it has a five-year life
Company purchased a machine for
$9,800
on January 1,
2019.
The machine has been depreciated using the straight-line method assuming it has
a five-year
life with a
$1,400
residual value.
Taylor
sold the machine on January 1,
2021,
for
$7,600.
What is the book value of the machine on December 31,
2020?
A.$ 2 comma 100
$2,100
B.$ 6 comma 440
$6,440
C.$ 8 comma 400
$8,400
D.$ 9 comma 800
$9,800
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Auditing Cases An Interactive Learning Approach
Authors: Steven M Glover, Douglas F Prawitt
4th Edition
0132423502, 978-0132423502
