Pearson Company bought a machine on January 1, 2022.The machine cost $180,000 and had an expected salvage value of $30,000.The life of the machine was estimated to be 5 years.The depreciable cost of the machine is
A)$180,000.
B)$150,000.
C)$50,000.
D)$30,000.

Question

Quizplus · Accepted Answer

The depreciable cost is calculated as the cost of the machine minus the salvage value. Therefore, $180,000 - $30,000 = $150,000.

Pearson Company Bought a Machine on January 1, 2022