Scandsia Ltd

question 30

Multiple Choice

Scandsia Ltd. owns a machine that it purchased on Jan 1, 2010 for $750,000. The machine had an estimated useful life of 5 years and an estimated residual value of $50,000. The company uses straight-line depreciation and records monthly depreciation. The machine was sold on December 31, 2013 for $200,000. What is the carrying value (net book value) at the date of sale?

• A)$10,000
• B)$150,000
• C)$190,000
• D)$560,000

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