Viva Company Bought Machine X for $18,000 Two Years Ago

question 155

Multiple Choice

Viva Company bought machine X for $18,000 two years ago.The machine had no residual value and had an estimated useful life of 10 years.If the company uses the straight-line depreciation method,calculate the current book value of the machine.

• A)$14,400
• B)$3,600
• C)$19,800
• D)$18,000

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Definitions:

Repairs

The process of fixing or restoring something that is broken, damaged, or malfunctioning to a good condition.

Public Easement

A legal right granted to the public to use a specific parcel of land for a designated purpose, such as a pathway or utility line.

Fee Owner

The individual or entity that holds full ownership rights of a property, including the ability to use, sell, or lease it.

Soil

The top layer of the earth's surface, composed of organic matter, minerals, gases, liquids, and organisms, supporting plant life.