a certain car was purchased for $14,900. the car has a resale value of $9,300 after a useful life of 8…

a certain car was purchased for $14,900. the car has a resale value of $9,300 after a useful life of 8 years. what is the book value of this car after 2 years? annual depreciation expense = $700 book value = $? round to the nearest hundredth

a certain car was purchased for $14,900. the car has a resale value of $9,300 after a useful life of 8 years. what is the book value of this car after 2 years? annual depreciation expense = $700 book value = $? round to the nearest hundredth

Answer

Explanation:

Step1: Identify initial - value and depreciation

The initial value of the car is $14900$ and the annual depreciation expense is $700$.

Step2: Calculate total depreciation after 2 years

The total depreciation after 2 years is the annual depreciation times the number of years. So, the total depreciation $D = 700\times2=1400$.

Step3: Calculate book - value

The book - value $BV$ is the initial value minus the total depreciation. So, $BV=14900 - 1400$.

Answer:

$13500.00$