a certain car was purchased for $27,200. the car has a resale value of $16,350 after a useful life of 7…

a certain car was purchased for $27,200. the car has a resale value of $16,350 after a useful life of 7 years. what is the book value of this car after 4 years? annual depreciation expense = $1550 book value = $?

a certain car was purchased for $27,200. the car has a resale value of $16,350 after a useful life of 7 years. what is the book value of this car after 4 years? annual depreciation expense = $1550 book value = $?

Answer

Explanation:

Step1: Identify the initial value and annual depreciation

Initial value of car is $27200, annual - depreciation is $1550.

Step2: Calculate the total depreciation after 4 years

Total depreciation = Annual depreciation×Number of years. So, total depreciation after 4 years is $1550×4 = 6200$.

Step3: Calculate the book - value

Book value=Initial value - Total depreciation. So, book value = $27200−6200 = 21000$.

Answer:

$21000$