a machine for $152,000. Its estimated life is 10 years with a residual value of $9,000. Using the straight-line method, what is the book value of the machine at the end of year 2?

100/10 year=10% rate of depreciation per year

With straight line method we exclude the residual value and then calculate the depreciation

152000-9000=143000

The amount of depreciation after 2 years

143,000*0.1*2=28,600

So the book value is

143,000-28,600=114,400