a certain car was purchased for $23,300. the car has a resale value of $13,325 after a useful life of 7…

a certain car was purchased for $23,300. the car has a resale value of $13,325 after a useful life of 7 years. what is the book value of this car after 3 years? annual depreciation expense = $1425 book value = $? round to the nearest hundredth.

a certain car was purchased for $23,300. the car has a resale value of $13,325 after a useful life of 7 years. what is the book value of this car after 3 years? annual depreciation expense = $1425 book value = $? round to the nearest hundredth.

Answer

Explanation:

Step1: Recall the formula for book value

Book value = Purchase price - (Annual depreciation expense × Number of years)

Step2: Substitute the given values

Purchase price = $23300$, Annual depreciation expense = $1425$, Number of years = 3 Book value = $23300-(1425\times3)$ First calculate $1425\times3 = 4275$ Then $23300 - 4275=19025$

Answer:

$19025.00$