Question

On January 1, Year 2, Ballard Company spent $8,000 on an asset to improve its quality....

On January 1, Year 2, Ballard Company spent $8,000 on an asset to improve its quality. The asset had been purchased on January 1, Year 1, for $30,000. The asset had a $3,600 salvage value and a 6-year life. Ballard uses straight-line depreciation. What would be the book value of the asset on January 1, Year 5?

Multiple Choice:

  • $13,200.

  • $15,600.

  • $12,000.

  • $6,000.

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Answer #1

Ans : $15,600 Option B

If any doubts or queries please comment and clarify I'll explain ASAP.

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