Respuesta :
On December 31, 2022, the book value of the equipment comes out to be $36,840 with monthly depreciation of $620.
Option D is the correct answer.
What is meant by depreciation?
Depreciation is a method that applies to tangible fixed assets where the fall in the value of an asset has been recorded.
Given values:
The purchase cost of equipment: $44,280
Monthly depreciation: $620
Step-1 Computation of annual depreciation charges:
[tex]\rm\ Annual \rm\ depreciation=\rm\ Monthly \rm\ depreciation \times \rm\ Number \rm\ of \rm\ months \rm\ in \rm\ a \rm\ year\\\rm\ Annual \rm\ depreciation=\$620 \times\ 12\\\rm\ Annual \rm\ depreciation=\$7,440[/tex]
Step-2 Computation of book value of the equipment at the year-end:
[tex]\rm\ Equipment's \rm\ Book \rm\ value=\rm\ Purchase \rm\ Cost \rm\ of \rm\ Equipment-\rm\ Annual \rm\ Depreciation \\\rm\ Equipment's \rm\ Book \rm\ value=\$44,280-\$7,440\\\rm\ Equipment's \rm\ Book \rm\ value=\$36,840[/tex]
Therefore, when the company purchases equipment at $44,280 with annual depreciation is $7,440, then the equipment's book value comes out to be $36,840 at the year-end.
Learn more about the depreciation in the related link:
https://brainly.com/question/14682335
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