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  2. Does the balance in the accumulated depreciation account mean that the equipment’s loss of value is $725,000? Explain?

Does the balance in the accumulated depreciation account mean that the equipment’s loss of value is $725,000? Explain?

ASSIGNMENT

It says, the balance in the equipment account is $1,375,000 and the balance in the accumulated depreciation–equipment account is $725,000.

  1. a) what is the book value of the equipment?
  2. b) Does the balance in the accumulated depreciation account mean that the equipment’s loss of value is $725,000? Explain?

 


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