Joseph Corporation Purchased an Extruding Machine on January 1, 2016

question 15

Multiple Choice

Joseph Corporation purchased an extruding machine on January 1, 2016 for $30,000. The machine is expected to be used for 5 years, and the company believes an equal portion of the cost should be allocated to each accounting period. Based on this information, what is the net book value of the machine on January 1, 2018?

• A)$6,000
• B)$18,000
• C)$12,000
• D)$30,000