a machine for $152,000. Its estimated life is 10 years with a residual value of $9,000. Using the straight-line method, what is the book value of the machine at the end of year 2?
100/10 year=10% rate of depreciation per year With straight line method we exclude the residual value and then calculate the depreciation 152000-9000=143000 The amount of depreciation after 2 years 143,000×0.1×2=28,600 So the book value is
