On January 1, 2018, Sanderson, Inc

question 103

Multiple Choice

On January 1, 2018, Sanderson, Inc. acquired a machine for $1,110,000. The estimated useful life of the asset is five years. Residual value at the end of five years is estimated to be $91,000. What is the book value of the machine at the end of 2019 if the company uses the straight-line method of depreciation?

• A) $666,000
• B) $702,400
• C) $611,400
• D) $665,996

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