a certain car was purchased for $21,100. the car has a resale value of $13,500 after a useful life of 8…

a certain car was purchased for $21,100. the car has a resale value of $13,500 after a useful life of 8 years. what is the book value of this car after 2 years? annual depreciation expense = $950 book value = $?

a certain car was purchased for $21,100. the car has a resale value of $13,500 after a useful life of 8 years. what is the book value of this car after 2 years? annual depreciation expense = $950 book value = $?

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, $P = 21100$, $DE=950$, and $n = 2$.

Step2: Substitute values into formula

$BV=21100 - 950\times2$. First, calculate $950\times2 = 1900$. Then, $BV=21100 - 1900$.

Step3: Calculate the book - value

$BV = 19200$.

Answer:

$19200$