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Records show that the equipment's depreciation was $35,000 last year. A new manager was trying to determine the original cost of a piece of equipment.
Records show that the equipment's depreciation was $35,000 last year. A new manager was trying to determine the original cost of a piece of equipment. The equipment has a nine-year life and its salvage value is $25,000. The company uses straight-line depreciation for its equipment. Note: Depreciation = (B-S) and Book Value = B-t (Depreciation) where B is original value, S is Salvage Value, n is life, and t is time. a) Determine the original cost of the equipment b) Determine the Book Value of the equipment after 9 years c) What is the Book Value in year 12
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