A business purchased equipment for $100,000. The estimated salvage value is $20,000, and the equipment has a useful life of 10 years. Calculate the book value at the end of year 3 using the straight-line depreciation method. Options: a) $68,000 b) $74,000 c) $76,000 d) $80,000

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 13PB: Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and...
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A business purchased equipment for $100,000. The
estimated salvage value is $20,000, and the equipment has
a useful life of 10 years. Calculate the book value at the end
of year 3 using the straight-line depreciation method.
Options:
a) $68,000
b) $74,000
c) $76,000
d) $80,000
Transcribed Image Text:A business purchased equipment for $100,000. The estimated salvage value is $20,000, and the equipment has a useful life of 10 years. Calculate the book value at the end of year 3 using the straight-line depreciation method. Options: a) $68,000 b) $74,000 c) $76,000 d) $80,000
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