If the equipment account has a balance of Rs. $22, 500$ and the accumulated depreciation account has a balance of Rs. $14, 000$ , the book value of the equipment is __________.

R s .36, 500

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R s .22, 500

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R s .14, 000

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R s .8, 500

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Solution

The correct option is D $R s .8, 500$
Accumulated depreciation is the total amount of a plant asset's cost that has been allocated to depreciation expense since the asset was put into service. Accumulated depreciation is associated with constructed assets such as buildings, machinery, office equipment, furniture, fixtures, vehicles, etc.
The amount of accumulated depreciation is used to determine a plant asset's book value (or carrying value).
Book value of asset = WDV of equipment (asset) - accumulated depreciation
Book value of asset = Rs. 22500 - Rs. 14000
Book value of asset = Rs. 8500

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If the equipment account has a balance of Rs. 22,500 and the accumulated depreciation account has a balance of Rs. 14,000, the book value of the equipment is __________.

If the equipment account has a balance of Rs. $22, 500$ and the accumulated depreciation account has a balance of Rs. $14, 000$ , the book value of the equipment is __________.