Los Angeles Company Acquired a Machine for $33,000

question 63

Multiple Choice

Los Angeles Company acquired a machine for $33,000.At the beginning of the current year, the machine had accumulated depreciation of $12,000.Annual depreciation expense totaled $3,000.The book value of the machine at the end of the year equals_____.

• A)$18,000
• B)$21,000
• C)$24,000
• D)$33,000

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Definitions:

Gross Profit Method

An inventory estimation technique that calculates the cost of goods sold and ending inventory by using the gross profit margin.