On Jan 1, 2003, a printer is purchased with a book value of $30,000 and an estimated useful life of 3 years and an estimated salvage value of $6,000. (1) What is the book value on December 31, 2004? (2) What is the balance of the accumulated depreciation account on December 31, 2004?

acc depreciation at december 31th 2004 16,000

Explanation:

We will first calcualte the depreciaton per year on the printer:

acquisition - salvge value = subject to depreciation

30,000 - 6,000 = 24,000

Then depreciable amount / useful life = dep per year

24,000 / 3 = 8,000

on December 31, 2004 there will be two yeas of depreciation accumulated

8,000 dep for 2003

8,000 dep for 2004

16,000 acumulated depreciation

The book value will be:

30,000 acquisition

(16,000) acumulated depreciation

14,000 net book value