a certain car was purchased for $19,400. the car has a resale value of $14,750 after a useful life of 5…

a certain car was purchased for $19,400. the car has a resale value of $14,750 after a useful life of 5 years. what is the book value of this car after 3 years? annual depreciation expense = $930 book value = $? round to the nearest hundredth.

a certain car was purchased for $19,400. the car has a resale value of $14,750 after a useful life of 5 years. what is the book value of this car after 3 years? annual depreciation expense = $930 book value = $? round to the nearest hundredth.

Answer

Explanation:

Step1: Recall book - value formula

The formula for book - value is $BV = P-DE\times n$, where $P$ is the purchase price, $DE$ is the annual depreciation expense, and $n$ is the number of years. Here, $P = 19400$, $DE = 930$, and $n = 3$.

Step2: Calculate the depreciation amount after 3 years

The depreciation amount after 3 years is $DE\times n=930\times3 = 2790$.

Step3: Calculate the book - value

$BV=P - DE\times n=19400-2790=16610$.

Answer:

$16610.00$