Question 4. A Company purchases a machine at the beginning of the year at a cost of $78,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 5 years with a $4,000 salvage value. The book value of the machine at the end of year 5 is: A) $74,000. B) $31,200. C) $14,800. D) $4,000.
Question 4. A Company purchases a machine at the beginning of the year at a cost of $78,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 5 years with a $4,000 salvage value. The book value of the machine at the end of year 5 is: A) $74,000. B) $31,200. C) $14,800. D) $4,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Question 4. A Company purchases a machine at the beginning of the year at a cost
of $78,000. The machine is depreciated using the straight-line method. The
machine's useful life is estimated to be 5 years with a $4,000 salvage value. The
book value of the machine at the end of year 5 is:
A) $74,000.
B) $31,200.
C) $14,800.
D) $4,000.
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