Register now or log in to join your professional community.
Using straight-line depreciation, what is the asset’s carrying value (book value) after21/2 years?
a. $8,750.
b. $12,250.
c. $14,583.
d. $16,250..
Yes, Option D is the right answer.
Correct answer is a. $8,750
Carrying value is d. $16,250.
D-----------------------------------------
d. $16,250. ....
Answer is D. $16,250.
$25,000-4,000=$21,000/6=$3,500 x2.5=$8,750
$25,000-8,750=$16,250
Answer is $16250 ($25000 less depreciation after2.5 yrs $8750).
as per my view answer D is correct answer..because as per Ias16..we can use straight line method for depreciation..in this method to calculate depreciation we deduct residual value from cost ().and then divide the remaining amount on expected useful life that is6 years here and then we get1 year depreciation and by multipling that amount with no of years past we can get current year depreciation..e.g: ($-$4000)=$21000/6=$3500 (2.5years)=$8750..$8750 is accumulated depreciation for2.5 years..so after2.5 years C.V will be $16250 ().if i made any mistake during answer i will be happy if any1 make me correct.
the correct answer is : B - $12,250
