Kansas Enterprises purchased equipment for $73,500 on January 1, 2018. The equipment is expected to have a five-year life, with a residual value of $6,300 at the end of five years.

Using the straight-line method, the book value at December 31, 2018 would be:

A.$53,760.

B.$60,060.

C.$58,800.

D.$67,200.

Question

Business

Hezekiah Klein

3 November, 01:04

Kansas Enterprises purchased equipment for $73,500 on January 1, 2018. The equipment is expected to have a five-year life, with a residual value of $6,300 at the end of five years.

Using the straight-line method, the book value at December 31, 2018 would be:

A.$53,760.

B.$60,060.

C.$58,800.

D.$67,200.

+1

Answers (1)

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Brayan Cunningham · Answer 1

Using the straight-line method, the book value at December 31, 2018 would be: A.$53,760.

Explanation:

Year 1 Year 2 Year 3 Year 4 Year 5

Cost 67200 53.760 40.320 26.880 13.440

Dep-Acu 13.440 13.440 13.440 13.440 13.440

Book Value 53.760 40.320 26.880 13.440 0

Kansas Enterprises purchased equipment for $73,500 on January 1, 2018. The equipment is expected to have a five-year life, with a residual value of $6,300 at the end of five years.Using the straight-line method, the book value at December 31, 2018 would be:A.$53,760.B.$60,060.C.$58,800.D.$67,200.