Question
Glenmore Corp. purchased a fax machine at the beginning of 2007.
The fmx machine cost s1,000 and is expected to last live years Its
salvage value is expedted to be $50.
It Glenmmore uses straight-line depreciabon, what will the fax
mactiines net book value be at the end of 2008?
The fmx machine cost s1,000 and is expected to last live years Its
salvage value is expedted to be $50.
It Glenmmore uses straight-line depreciabon, what will the fax
mactiines net book value be at the end of 2008?
Answers
(cost - salvage)/life = annual depreciation
(1000 = 50)/5 = 190
Book value - # years depreciated x annual depreciation = book value
1000 - 2(190) = 620
(1000 = 50)/5 = 190
Book value - # years depreciated x annual depreciation = book value
1000 - 2(190) = 620