Caesar Company bought a machine on January 1, 2019. The machine cost $144,000 and had an expected salvage value of $24,000. The life of the machine was estimated to be 5 years.
Using straight line depreciation, the book value of the machine at the beginning of the third year would be:
A) $120,000
B) $48,000
C) $72,000
D) $96,000

Question

Quizplus · Accepted Answer

Annual depreciation = _($₁₄₄_{,000 - $}₂₄_,_{000) / 5 = $}₂₄_,₀₀₀ _{$144,000 - (2 x $24,000) = $96,000}

Caesar Company Bought a Machine on January 1, 2019