Question

Glenmore Corp. purchased a fax machine at the beginning of 2007.

The fmx machine cost s1,000 and is expected to last live years Its
salvage value is expedted to be $50.
It Glenmmore uses straight-line depreciabon, what will the fax
mactiines net book value be at the end of 2008?

Answer 1

(cost - salvage)/life = annual depreciation

(1000 = 50)/5 = 190
Book value - # years depreciated x annual depreciation = book value
1000 - 2(190) = 620