on january 1, 2025, ace supply company purchased equipment for $54,000. the company is depreciating the…

on january 1, 2025, ace supply company purchased equipment for $54,000. the company is depreciating the equipment at the rate of $750 per month. the book value of the equipment at december 31, 2025 is: select answer from the options below a $45,000. b $9,000. c $54,000. d $0.

on january 1, 2025, ace supply company purchased equipment for $54,000. the company is depreciating the equipment at the rate of $750 per month. the book value of the equipment at december 31, 2025 is: select answer from the options below a $45,000. b $9,000. c $54,000. d $0.

Answer

Explanation:

Step1: Calculate total depreciation in 2025

There are 12 months in 2025. Depreciation per month is $750. So total depreciation $D = 750\times12$. $D=750\times12 = 9000$

Step2: Calculate book - value

Book - value $BV$ is the initial cost minus total depreciation. Initial cost of equipment is $54000$. So $BV=54000 - D$. $BV = 54000-9000=45000$

Answer:

A. $45,000$