Answered

Welcome to Westonci.ca, your one-stop destination for finding answers to all your questions. Join our expert community now! Discover the answers you need from a community of experts ready to help you with their knowledge and experience in various fields. Get detailed and accurate answers to your questions from a dedicated community of experts on our Q&A platform.

Plethora Farms purchased a greenhouse for $52,700. Delivery costs totaled $1,825 and handling costs were $3,000. The useful life is 10 years and the salvage value is $14,050. Using the straight-line depreciation method, calculate the book value at the end of year 4. Group of answer choices $31,256 $58,000 $22,000 $40,135

Sagot :

Answer:

$40,135

Explanation:

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

Cost of the asset =purchase cost + delivery cost + handling cost

$52,700 +  $1,825 + $3,000 = $57,525

depreciation expense = ($57,525 - $14,050) / 10 = $4,347.50

book value at the end of year 4 = cost of the asset - accumulated depreciation

Accumulated depreciation =  $4,347.50 x 4 = $17,390

Book value = $57,525 - $17,390 =  $40,135

We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.