a boat is purchased for $51,000 and has a resale value of $42,000 after a useful life of 6 years. using a…
a boat is purchased for $51,000 and has a resale value of $42,000 after a useful life of 6 years. using a book value depreciation chart, calculate the number of years until the book value of the boat is $49,500.
Answer
Explanation:
Step1: Calculate annual depreciation
Annual depreciation = $\frac{51000 - 42000}{6}=1500$
Step2: Calculate depreciation amount to reach $49500$
Depreciation amount = $51000 - 49500 = 1500$
Step3: Find number of years
Number of years = $\frac{1500}{1500}=1$
Answer:
1