On January 1, 2016, Martini, Inc acquired a machine for $1,050,000

The estimated useful life of the asset is five years. Residual value at the end of five years is estimated to be $100,000. What is the book value of the machine at the end of 2017 if the company uses the straight-line method of depreciation?
A) $630,000
B) $670,000
C) $570,000
D) $629,996

B .Straight-line depreciation = (Cost - Residual value) / Useful life
Depreciation as per the straight-line method = ($1,050,000 - $100,000 ) / 5 = $190,000
Book value of the asset at the end of 2017 = $1,050,000 - $190,000 - $190,000 = $670,000.