Using the sum-of-the years'-digits method, depreciation for 2010 and book value at December 31, 2010, would be
A)$13,500 and $13,500.
B)$13,500 and $8,500.
C)$12,000 and $17,000.
D)$12,000 and $12,000.Depreciation in 2010 = ($45,000 5,000) 3/10 = $12,000 Book value, 12/31/10 = $45,000 16,000 12,000 = $17,000

Question

Quizplus · Accepted Answer

Using the sum-of-the-years'-digits method, the depreciation for 2010 is ($45,000 - $5,000) x 3/10 = $12,000. The book value at December 31, 2010 is calculated by subtracting the total depreciation taken from the original cost: $45,000 - $16,000 - $12,000 = $17,000. Therefore, the correct choice is C.

Using the Sum-Of-The Years'-Digits Method, Depreciation for 2010 and Book