Problem:
On January 1, 2014, Ballard Company spent $12,000 on an asset to improve its quality. The asset had been purchased on January 1, 2009 for $38,000. The asset had a $6,800 salvage value and a 6-year life. Ballard uses straight-line depreciation.
Required:
What would be the book value of the asset on January 1, 2015?
- 15,200
- 6,800
- 7,600,
- 15,600
Note: Please show the work not just the answer.