Question

MC Qu. 9-81 Holly, Inc. has a building that originally cost... Holly, Inc. has a building that originally cost $410,000. Holly expects to be able to sell the facility for $244,000 at the end of its useful life. The balance of the related Accumulated Depreciation account is $107,000. The depreciable cost of the facility is: Multiple Choice $166,000. $137,000. $303,000. $107,000.

Answer 1

$166,000

Step-by-step explanation:

Depreciation is a method used in expensing the cost of an asset. It is the reduction in the value of an asset.

Depreciable cost is the amount of an asset's cost that would be depreciated.

Depreciable cost = Cost of asset - Salvage value

$410,000 - $244,000 = $166,000

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