Depreciation Account It says, the balance in the equipment account is $1,375,000 and the balance in the accumulated depreciation–equipment account is $725,000. a) what is the book value of the equipment? b) Does the balance in the accumulated depreciation account mean that the equipment’s loss of value is $725,000? Explain?
Why using the book value or the market value of the firm’s capital in the determination of the cost of capital is considered superior?Explain.
Why using the book value or the market value of the firm’s capital in the determination of the cost of capital is considered superior?Explain.(6marks)