Trekkers Footwear Bought a Piece of Machinery on January 1

Multiple Choice

Trekkers Footwear bought a piece of machinery on January 1, 2006 at a cost of $2.3 million, and the machinery is being depreciated annually at an amount of $230,000 for 10 years. Its market value on December 31, 2008 is $1.75 million. The firm's accountant is preparing its financial statement for the fiscal year end on December 31, 2008. The asset's value should be recognized on the balance sheet at

A) $2.3 million.
B) $1.61 million.
C) $230,000.
D) $1.75 million.