Calculate the book value of the equipment

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Reference no: EM13259246

On January1, 2004, ABC Company purchased equipment for $98,000. The equipmentwas assigned a 12-year life, a $14,000 residual value, and was being depreciatedusing the straight-line method.

On January1, 2009, ABC Company spent $45,000 to completely overhaul the equipment. This overhaul caused ABC Company to change the life of the equipment from 12years to 25 years with a residual value at the end of the 25 years of $3,000.

Calculate the book value of the equipment at December 31, 2011. Do not use decimals in your answer.

Reference no: EM13259246

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