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

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter9: Capital Budgeting And Cash Flow Analysis

Section9.A: Depreciation

Problem 1P

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