Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac

Exercise 12

Determining fixed asset's book value
The balance in the equipment account is $28,650,000, and the balance in the accumulated depreciation-equipment account is $16,430,000.
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 $16,430,000 Explain.