On January 1, Year 2, Ballard Company spent $12,000 on an asset to improve its quality. The asset had been purchased on January 1, Year 1, for $52,000. The asset had a $4,000 salvage value and a 6-year life. Ballard uses straight-line depreciation. What would be the book value of the asset on January 1, Year 5?

Multiple Choice 

• $24,800. 
• $20,800. 
• $10,400 
• $24,000.

Answer rating: 100% (QA)

Year 1 Jan 1 Original Cost 52000 Less Dep for Year 1 52... View the full answer