Viva, Inc. bought machine X for two years ago. The machine had no residual value and had an estimated useful life of 10 years. If the company uses the straightline depreciation method, calculate the current book value of the machine.

the current book value of the machine is $14,400

Explanation:

The computation of the current book value of the machine is shown below:

The Annual Depreciation is

= (Cost - Salvage Value) ÷ (Useful Life)

= ($18,000 - 0) ÷ 10 years  

= $1,800

Now the depreciation for two years is

= $1,800 × 2

= $3,600

So, the current book value is

= Cost - accumulated depreciation

= $18,000 - $3,600

= $14,400

Hence, the current book value of the machine is $14,400

answer; someone must cover the cost associated with the provision of scarce goods in both sectors;