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Kansas Enterprises purchased equipment for $73,500 on January 1, 2018. The equipment is expected to have a five-year life, with a residual value of $6,300 at the end of five years.

Using the straight-line method, the book value at December 31, 2018 would be:
A.$53,760.
B.$60,060.
C.$58,800.
D.$67,200.

Respuesta :

Answer:

Using the straight-line method, the book value at December 31, 2018 would be $53.760

Explanation:

                2018 2019 2020 2021 2022

Cost      67200 53.760 40.320 26.880 13.440

Dep-Acu      13.440 13.440 13.440 13.440 13.440

Book Value53.760 40.320 26.880 13.440 0

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