Answered

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a company bought a new machine for its warehouse on january 1. whats the book value of the new machine on december 31. paid $10,000 in cash. financed the rest of the purchase price

Sagot :

It can be noted that the book value of the machinery by December 31 is $36000.

How to calculate the book value

From the complete information, the purchase price of the machinery will be:

= $10000 + $2000 + $30000

= $42000

Annual depreciation will be;

= $500 × $12

= $6000

Therefore, the book value will be:

= $42000 - $6000

= $36000

Learn more about book value on:

https://brainly.com/question/23057744

anthougo

The book value of the new machine on December 31 of the first year is $45,000.

What is book value?

The book value of an asset is the purchase cost less the accumulated depreciation.

Assume that the asset was purchased for $50,000 on January 1, and depreciation is at 10% per year.

Data and Calculations:

Cost of asset = $50,000

Depreciation rate = 10%

Depreciation expense = $5,000 ($50,000 x 10%)

Book value on December 31 = $45,000 ($50,000 - $5,000)

Thus, the book value of the new machine on December 31 of the first year is $45,000.

Learn more about depreciation methods at https://brainly.com/question/25530648

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