The Asset Section of the January 1, 20X9, Balance Sheet

Multiple Choice

The asset section of the January 1, 20X9, balance sheet of Big Valley Company includes a machine which was acquired on January 1, 20X5. The machine's original cost was $500,000, and the estimated life was determined to be 10 years. The estimated residual value was zero, and the straight- line method of depreciation was chosen. The book value of the machine as of January 1, 20X9, is:

A) $450,000
B) $300,000
C) $500,000
D) $250,000