A company purchased new furniture at a cost of $16,000 on January 1. The furniture is estimated to have a useful life of 6 years and a $1,000 salvage value. The company uses the straight-line method of depreciation. What is the book value of the furniture on December 31 of the first year?

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Orlando Horn

14 December, 18:31

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Asia Blevins · Answer 1

($16,000-$1,000) / 6 years = $2,500 per year.

$16,000 - $2,500 = $13,500