Question

1/1/X2 Equipment's original cost $100,000

Estimated salvage value $20,000
12/31/X5 Accumulated depreciation $32,000
12/31/X5 Appraised fair market value $75,000
The book value of the equipment at 12/31/X5 would be:

Answer 1

To calculate the book value of the equipment, subtract the accumulated depreciation from the original cost.

Step-by-step explanation:

To calculate the book value of the equipment at 12/31/X5, we need to subtract the accumulated depreciation from the original cost. The accumulated depreciation is the total amount that the equipment has depreciated over time.

Given that the original cost of the equipment is $100,000 and the accumulated depreciation is $32,000, we can calculate the book value as follows:

Book value = Original cost - Accumulated depreciation

Book value = $100,000 - $32,000 = $68,000

Therefore, the book value of the equipment at 12/31/X5 would be $68,000.