A truck cost $68,500 and has accumulated depreciation of $27,400. What book value remains?
Correct Answer
D) $41,100
Book value is original cost less accumulated depreciation.
Why This Is the Correct Answer
Book value is original cost less accumulated depreciation.
Why the Other Options Are Wrong
Option A: $27,400
$27,400 is below the supported result for equipment book value; it likely uses the wrong base, period, or account bucket.
Option B: $34,250
$34,250 is below the supported result for equipment book value; it likely uses the wrong base, period, or account bucket.
Option C: $38,600
$38,600 is below the supported result for equipment book value; it likely uses the wrong base, period, or account bucket.
Memory Technique
Original and cost live in different drawers; Checks Fixed-Asset tells which opens.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Section Two, Equipment Records, Depreciation and Depreciation Methods; use the job ledger figures in the stem and recompute the same accounting measure.
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