Using the straight-line method, depreciation for 2010 and book value at December 31, 2010, would be:
A)$10,000 and $20,000.
B)$10,000 and $25,000.
C)$11,250 and $17,500.
D)$11,250 and $22,500.Depreciation in 2010 = ($45,000 5,000) 4 = $10,000 Book value, 12/31/10 = $45,000 (2 $10,000) = $25,000

Question

Quizplus · Accepted Answer

The depreciation for 2010 is calculated as ($45,000 - $5,000) / 4 = $10,000. The book value at December 31, 2010, is $45,000 - (2 * $10,000) = $25,000.

Using the Straight-Line Method, Depreciation for 2010 and Book Value