Sure, here's how to calculate the book value of the machine in 2030:

1. First, we need to determine the total amount of depreciation over the 20-year period. This is the original cost of the equipment minus the scrap value. So, $1,000,000 - $100,000 = $900,000.

2. Next, we need to calculate the annual depreciation. This is the total depreciation divided by the number of years. So, $900,000 / 20 = $45,000. This means the value of the equipment decreases by $45,000 each year.

3. Now, we need to find out how many years have passed from 2012 to 2030. This is 2030 - 2012 = 18 years.

4. Then, we multiply the number of years by the annual depreciation to find the total depreciation from 2012 to 2030. So, 18 * $45,000 = $810,000.

5. Finally, we subtract this total depreciation from the original cost of the equipment to find the book value in 2030. So, $1,000,000 - $810,000 = $190,000.

So, the book value of the machine in 2030 will be $190,000.

Question

Sure, here's how to calculate the book value of the machine in 2030:

1. First, we need to determine the total amount of depreciation over the 20-year period. This is the original cost of the equipment minus the scrap value. So, $1,000,000 - $100,000 = $900,000.

2. Next, we need to calculate the annual depreciation. This is the total depreciation divided by the number of years. So, $900,000 / 20 = $45,000. This means the value of the equipment decreases by $45,000 each year.

3. Now, we need to find out how many years have passed from 2012 to 2030. This is 2030 - 2012 = 18 years.

4. Then, we multiply the number of years by the annual depreciation to find the total depreciation from 2012 to 2030. So, 18 * $45,000 = $810,000.

5. Finally, we subtract this total depreciation from the original cost of the equipment to find the book value in 2030. So, $1,000,000 - $810,000 = $190,000.

So, the book value of the machine in 2030 will be $190,000.

Knowee AI · Accepted Answer

Sure, here's how to calculate the book value of the machine in 2030:

1. First, we need to determine the total amount of depreciation over the 20-year period. This is the original cost of the equipment minus the scrap value. So, $1,000,000 - $100,000 = $900,000.

2. Next, we need to calculate the annual depreciation. This is the total depreciation divided by the number of years. So, $900,000 / 20 = $45,000. This means the value of the equipment decreases by $45,000 each year.

3. Now, we need to find out how many years have passed from 2012 to 2030. This is 2030 - 2012 = 18 years.

4. Then, we multiply the number of years by the annual depreciation to find the total depreciation from 2012 to 2030. So, 18 * $45,000 = $810,000.

5. Finally, we subtract this total depreciation from the original cost of the equipment to find the book value in 2030. So, $1,000,000 - $810,000 = $190,000.

So, the book value of the machine in 2030 will be $190,000.

A piece of equipment worth $1 million in 2012 depreciates linearly over 20 years. The scrap value of the equipment is $100,000. What will be the book value of the machine in 2030?

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