Question 5 of 29
Murazik Corporation has a 12/31 year-end. On July 1, 2021, Murazik purchases a new machine for $128,800. Murazik estimates the
machine will have a salvage value of $12,800 and a useful life of 5 years. The following depreciation schedule has been produced by
Murazik's corporate accounting department:
Useful
Accumulated
Depreciable Life
Fraction
Year
Annual
Depreciation
Depreciation
Base
(in
of Year
(End of
Expense
Years)
Period)
2021 $116,000
4
1/2
$14,500
$14,500
2022
$116,000
4
1
$29,000
$43,500
2023
$116,000
4
1
$29,000
$72,500
2024 $116,000
4
1
$29,000
$101,500
2025
$116,000
4
1/2
$14,500
$116,000
What will be the net book value of the machine on Murazik's Balance Sheet at the end of 2023? $