American Corporation Purchased a Building for $900,000 at the End

Multiple Choice

American Corporation purchased a building for $900,000 at the end of year 2002. The building will be depreciated over 40 years and is estimated to have a $100,000 salvage value. At the end of 2012, when it had a book value of $700,000, it was appraised for $1,100,000. A potential buyer offered $900,000. American rejected the offer. At what amount should the net book value of the building be at the end of 2012.

A) $1,100,000
B) $ 900,000
C) $ 600,000
D) $ 700,000