Firm X purchased a piece of equipment exactly 6 years ago. The piece of equipment had a purchase price of $ 5,726,489 , a salvage value of $ 252,069 , and an estimated useful life of 24 years. What is the current book value of this piece of equipment owned by Firm X? (Round your answer to the nearest whole dollar and record without a dollar sign or a comma. For example, record $34,253.85431 as 34254).

Book value= 4357882

Explanation:

Giving the following information:

Purchase price= $5,726,489

Useful life= 24 years

Salvage value= $252,069

To calculate the book value, we need to determine the accumulated depreciation. We will use the straight-line method to calculate the annual depreciation:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (5,726,489 - 252,069)/24

Annual depreciation= $228,101.25

Now, the accumulated depreciation:

Accumulated depreciation= 228,101.25*6= $1,368,607.5

Finally, the book value:

Book value= purchase price - accumulated depreciation

Book value= 5,726,489 - 1,368,607.5

Book value= $4,357,881.5

whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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