Based on the various costs incurred for the new machine, the book value on December 31 is $36,000.
What was the book value?
This can be found as:
= Total cost of machine - Depreciation
Total cost can be found as:
= Cash paid + Note payable + Setup charge
= 10,000 + 30,000 + 2,000
= $42,000
Book value is:
= 42,000 - ( 500 x 12 months)
= $36,000
Find out more on fixed asset book value at https://brainly.com/question/23057744.
