Compute what is the book value of the equipment

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Problem 1: Foster Company bought equipment on January 3 of this year for $10,000. At the time of purchase, the equipment was estimated to have a useful life of nine years and a trade-in value of $1,000 at the end of nine years. Using the straight-line method, the amount of one year's depreciation is

a. $1,111.

b. $1,222.

c. $1,000.

d. $9,000.

e. $2,000.

Problem 2: If equipment cost $20,000 and accumulated depreciation amounts to $6,000, the book value of the equipment is

a. $26,000.

b. $6,000.

c. $14,000.

d. $20,000.

e. none of these.

Problem 3: Dowdy Co. has equipment with a cost of $30,000 and accumulated depreciation of $22,000. What is the book value of the equipment?

a. $8,000

b. $30,000

c. $52,000

d. $22,000

Reference no: EM132618523

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