Question

On January 1, 2013, M. Johanson Company purchased equipment for $36,000. The company is depreciating the equipment at the rate of $500 per month. The book value of the equipment at December 31, 2013 is:A)$0.B)$6,000.C)$30,000.D)$36,000.

Answer 1

C)$30,000

Step-by-step explanation:

Since the assets will depreciate including the acquisition month, the depreciation will be calculated as $500x12= $6000 . So the Book Value will be $36000 -$6000 = $30000