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Sylvie Co. purchased a piece of equipment on January 1, 2016 for $259,000. Its estimated useful life was seven years, and its estimated salvage value was $49,000. It purchased the equipment with a three-year note, 10% interest; principal and interest is only due to be paid on December 31, 2019. The Company sells the equipment for $40,000 on December 31, 2023. When the company sells the equipment on December 31, 2023, what is its book value? O $49,000 O zero O $19,000 O $63,000

Sylvie Co. purchased a piece of equipment on January 1, 2016 for $259,000. Its estimated useful life was seven years, and its estimated salvage value was $49,000. It purchased the equipment with a three-year note, 10% interest; principal and interest is only due to be paid on December 31, 2019. The Company sells the equipment for $40,000 on December 31, 2023. When the company sells the equipment on December 31, 2023, what is its book value? O $49,000 O zero O $19,000 O $63,000

FINANCIAL ACCOUNTING
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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Sylvie Co. purchased a piece of equipment on January 1, 2016 for $259,000. Its estimated useful life was seven years, and its estimated salvage value was $49,000. It purchased the equipment with a three-year note, 10% interest; principal and interest is only due to be paid on December 31, 2019. The Company sells the equipment for $40,000 on December 31, 2023. When the company sells the equipment on December 31, 2023, what is its book value? O $49,000 O zero O $19,000 O $63,000
Transcribed Image Text:Sylvie Co. purchased a piece of equipment on January 1, 2016 for $259,000. Its estimated useful life was seven years, and its estimated salvage value was $49,000. It purchased the equipment with a three-year note, 10% interest; principal and interest is only due to be paid on December 31, 2019. The Company sells the equipment for $40,000 on December 31, 2023. When the company sells the equipment on December 31, 2023, what is its book value? O $49,000 O zero O $19,000 O $63,000
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