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    What is the book value net of depreciation for the Carson Company?

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    On January 1, 2006, Carson Company purchased a new machine for $2,100,000. The new machine has an estimated useful life of nine years and the salvage value was estimated to be $75,000. Depreciation was computed on the sum-of-the-years'-digits method. What amount should be shown in Carson's balance sheet at December 31, 2007, net of accumulated depreciation, for this machine?

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    Solution Preview

    Till Dec 31,2007 2 years would have passed and so the accumulated depreciation will be for 2 years.
    In sum of year digits we add the digits of the ...

    Solution Summary

    The solution explains how to calculate the book value of the machine.