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16 November, 18:29

On January 1, 2013, M. Johanson Company purchased equipment for $36,000. The company is depreciating the equipment at the rate of $500 per month. The book value of the equipment at December 31, 2013 is:A) $0. B) $6,000. C) $30,000. D) $36,000.

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  1. 16 November, 22:02
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    C) $30,000

    Explanation:

    Since the assets will depreciate including the acquisition month, the depreciation will be calculated as $500x12 = $6000. So the Book Value will be $36000 - $6000 = $30000
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