The estimated amount of depreciation on equipment for the current year is $10,650. Journalize the adjusting entry to record the depreciation. The balance in the equipment account is $28,650,000, and...

The estimated amount of depreciation on equipment for the current year is $10,650. Journalize the adjusting entry to record the depreciation.

The balance in the equipment account is $28,650,000, and the balance in the accumulated depreciation—equipment account is $16,430,000.

a. What is the book value of the equipment?

b. Does the balance in the accumulated depreciation account mean that the equipment’s loss of value is $16,430,000? Explain.