Using the straight-line method, the book value at December 31, 2009 would be:
A)$57,600.
B)$51,600.
C)$58,800.
D)$52,800.$72,000 13,200 = $58,800

Question

Quizplus · Accepted Answer

To calculate the book value of an asset using the straight-line method, we need to subtract the accumulated depreciation from the original cost of the asset. In this case, the original cost is $72,000 and the accumulated depreciation for two years is $13,200 ($6,600 per year). Therefore, the book value at December 31, 2009 would be:

$72,000 - $13,200 = $58,800

So, the correct answer is C.

Using the Straight-Line Method, the Book Value at December 31