Simple Accounting Question MCQ
Suppose the following original and revised information is available regarding a piece of equipment:
Original information at January 1, 20X1:
January 1, 20X1 Equipment cost $63,000
Estimated life at January 1, 20X1 A years
Estimated salvage value $3,000
Double declining balance (DDB) depreciation method using the half-year convention is used. Revised information at January 1, 20X3:
Estimated life (total from January 1, 20X1) 7 years (that is, 5 year life remaining at January 1, 20X3)
Estimated salvage value $4,000 Switch to straight-line depreciation method is made.
What is the equipment’s book or carrying value on December 31, 20X6?
ID a. $4,000 CD b. $7,925 CD c. $11,850 CD d. $6,350
Using the information below, what is the equipment’s book or carrying value on December 31, 20X6?
