JK Builders Co purchases a new excavator costing £40,000. Its expected useful life is ten years, at which point it is anticipated that the excavator will have a residual value of £6,000. If the straight-line method depreciation is used, what is the carrying amount of the excavator at the end of four years? O A. £29,800 OB. £26,400 O C. £13,600 OD. £24,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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JK Builders Co purchases a new excavator costing £40,000. Its expected useful life is ten years, at which point it is anticipated that the excavator will have a residual value of £6,000. If the straight-line method of
depreciation is used, what is the carrying amount of the excavator at the end of four years?
O A. £29,800
B. £26,400
O C. £13,600
O D. £24,000
Transcribed Image Text:JK Builders Co purchases a new excavator costing £40,000. Its expected useful life is ten years, at which point it is anticipated that the excavator will have a residual value of £6,000. If the straight-line method of depreciation is used, what is the carrying amount of the excavator at the end of four years? O A. £29,800 B. £26,400 O C. £13,600 O D. £24,000
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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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