Question

On January 1, 2022, Oriole Company purchased equipment for $60480. The company is depreciating the equipment at the rate of $840 per month. The book value of the equipment at December 31, 2022 is:

Answer 1

$50,400

Step-by-step explanation:

Given that,

Cost of equipment = $60,480

Rate of depreciation of equipment = $840 per month

Number of months from January 1, 2022 to December 31, 2022 = 12 months

Depreciation amount for 12 months:

= 12 × $840 per month

= $10,080

Book Value:

= Cost of equipment - Depreciation amount for 12 months

= $60,480 - $10,080

= $50,400

Therefore, the book value of the equipment at December 31, 2022 is $50,400.