a certain car was purchased for $24,200. the car has a resale value of $19,200 after a useful life of 8…

a certain car was purchased for $24,200. the car has a resale value of $19,200 after a useful life of 8 years. what is the book value of this car after 4 years? annual depreciation expense = $625 book value = $?

a certain car was purchased for $24,200. the car has a resale value of $19,200 after a useful life of 8 years. what is the book value of this car after 4 years? annual depreciation expense = $625 book value = $?

Answer

Explanation:

Step1: Recall book - value formula

The formula for book - value is $BV = P-DE\times n$, where $BV$ is the book - value, $P$ is the purchase price, $DE$ is the annual depreciation expense, and $n$ is the number of years. Here, $P = 24200$, $DE=625$, and $n = 4$.

Step2: Calculate the depreciation amount

The total depreciation amount after 4 years is $DE\times n=625\times4 = 2500$.

Step3: Calculate the book - value

$BV=P - DE\times n=24200-2500=21700$.

Answer:

$21700.00$