XYZ Company Owns an Asset with Historical Cost of $75,000,estimated

question 111

Multiple Choice

XYZ Company owns an asset with historical cost of $75,000,estimated useful life of 10 years,and salvage value of $5,000.As of December 31,2011,the asset has accumulated depreciation of $49,000 after adjustment.The company still owes $20,000 in liabilities from the purchase of the asset years ago.What is the asset's book value on December 31,2011?

• A)$70,000
• B)$26,000
• C)$21,000
• D)$6,000

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