Dowdy Co. has equipment with a cost of $30,000 and accumulated depreciation of $22,000. What is...
Dowdy Co. has equipment with a cost of $30,000 and accumulated depreciation of $22,000. What is the book value of the equipment?
Select one:
a. $8,000
b. $30,000
c. $52,000
d. $22,000
Homework Answers
Ans. Option A $8,000
Explanation: Book value is the difference between cost of asset (equipment) and accumulated depreciation over the useful life.
Book value = Cost of equipment - Accumulated depreciation
= $30,000 - $22,000
= $8,000
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