The Buddy Burger Corporation has $3.5 million in long-lived assets and has an accumulated depreciation account of $1.1 million.Which of the following statements is true?
A)The book value of long-lived assets is $2.4 million.
B)The market value of long-lived assets is $3.5 million.
C)The carrying value of long-lived assets is $3.5 million.
D)The resale value of long-lived assets is $2.4 million.

Question

Quizplus · Accepted Answer

The book value of long-lived assets is calculated by subtracting accumulated depreciation from the original cost of the assets. Therefore, the book value of long-lived assets for Buddy Burger Corporation is $3.5 million - $1.1 million = $2.4 million. Therefore, choice A is the correct answer. Option B is incorrect as the market value of long-lived assets may or may not be equal to the carrying value of long-lived assets. Option C is incorrect as carrying value and book value are the same. Option D is incorrect as the resale value may be higher or lower than the book value of long-lived assets.

The Buddy Burger Corporation Has $3