a certain car was purchased for $29,600. the car has a resale value of $17,700 after a useful life of 7…

a certain car was purchased for $29,600. the car has a resale value of $17,700 after a useful life of 7 years. what is the book value of this car after 5 years? annual depreciation expense = $1700 book value = $? round to the nearest hundredth.

a certain car was purchased for $29,600. the car has a resale value of $17,700 after a useful life of 7 years. what is the book value of this car after 5 years? annual depreciation expense = $1700 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, $P = 29600$, $DE=1700$, and $n = 5$.

Step2: Substitute values into formula

$BV=29600 - 1700\times5$. First, calculate $1700\times5 = 8500$. Then, $BV=29600 - 8500$. $BV = 21100$.

Answer:

$21100.00$