Question

The jones company has just completed the third year of a​ five-year macrs recovery period for a piece of equipment it originally purchased for $ 295 comma 000.

a. what is the book value of the​ equipment

Answer 1

Using the straight line method

Depreciation per year
295,000÷5=59,000

Accumulated depreciation for 3 years
59,000×3=177,000

Book value of the equipment
295,000−177,000
=118,000