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31 December, 04:12

Assume you purchased a crane for $900,000 ten years ago. Accumulated depreciation has a balance of $460,000 and you sell the crane for $480,000. What is the book value of the crane

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  1. 31 December, 04:40
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    Book value = $440,000

    Explanation:

    Giving the following information:

    Assume you purchased a crane for $900,000 ten years ago. Accumulated depreciation has a balance of $460,000.

    In accounting terms, the book value of an asset is the difference between the purchasing price and the accumulated depreciation:

    Book value = 900,000 - 460,000 = $440,000
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