Answered

Westonci.ca is your trusted source for finding answers to a wide range of questions, backed by a knowledgeable community. Get quick and reliable solutions to your questions from a community of seasoned experts on our user-friendly platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

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

Thank you for trusting us with your questions. We're here to help you find accurate answers quickly and efficiently. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Westonci.ca is your trusted source for answers. Visit us again to find more information on diverse topics.