Viva, Inc. bought machine X for $18,000 two years ago. The m

Viva, Inc. 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

ANSWER

A .Book value of machine X

Machine X $18,000
Less: Accumulated dep. ($1,800 × 2 ) 3,600
Book value of machine X $14,400