JK Builders Co purchases a new excavator costing £40,000. Its expected useful life is ten years, at which point it is anticipated that the excavator will have a residual value of £6,000. If the straight-line method depreciation is used, what is the carrying amount of the excavator at the end of four years? O A. £29,800 OB. £26,400 O C. £13,600 OD. £24,000

JK Builders Co purchases a new excavator costing £40,000. Its expected useful life is ten years, at which point it is anticipated that the excavator will have a residual value of £6,000. If the straight-line method depreciation is used, what is the carrying amount of the excavator at the end of four years? O A. £29,800 OB. £26,400 O C. £13,600 OD. £24,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

JK Builders Co purchases a new excavator costing £40,000. Its expected useful life is ten years, at which point it is anticipated that the excavator will have a residual value of £6,000. If the straight-line method of
depreciation is used, what is the carrying amount of the excavator at the end of four years?
O A. £29,800
B. £26,400
O C. £13,600
O D. £24,000

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