Refer to Fabian Woodworks. If the company uses the straight-line method of depreciation, what is the book value at December 31, 2014?
A)$ 8,000
B)$ 6,000
C)$10,000
D)$ 4,000

Question

Quizplus · Accepted Answer

To calculate the book value at December 31, 2014, we need to subtract the accumulated depreciation from the original cost. The original cost is given as $26,000, and the total depreciation over four years using the straight-line method is $20,000. Therefore, the book value at December 31, 2014, would be:
$26,000 - $20,000 = $6,000.
So, the best choice is B.