If a machine has a purchase price of \$100,000 and annual depreciation of \$10,000, what will be the accumulated depreciation and net book value after 3 years?

• A. Accumulated depreciation: \$40,000; Net book value: \$60,000
• B. Accumulated depreciation: \$20,000; Net book value: \$80,000
• C. Accumulated depreciation: \$30,000; Net book value: \$70,000
• D. Accumulated depreciation: \$10,000; Net book value: \$90,000

Answer: (C)