If Acme uses straight line depreciation, what is the book value of the equipment

H

Harry

New member
on December 31, Year 2? On January 1, Year 1, Acme Company purchased new equipment for $40,000. The equipment is expected to be used for four years, and then will be sold for $8,000.

If Acme uses straight line depreciation, what is the book value of the equipment on December 31, Year 2?


a. $32,000
b. $30,000
c. $24,000
d. $20,000
e. none of the above
 
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