a certain car was purchased for $30,400. the car has a resale value of $26,600 after a useful life of 5…

a certain car was purchased for $30,400. the car has a resale value of $26,600 after a useful life of 5 years. what is the book value of this car after 4 years? annual depreciation expense = $760 book value = $?

a certain car was purchased for $30,400. the car has a resale value of $26,600 after a useful life of 5 years. what is the book value of this car after 4 years? annual depreciation expense = $760 book value = $?

Answer

Explanation:

Step1: Identify the initial - value and annual - depreciation

The initial value of the car is $V_0 = 30400$, and the annual depreciation expense is $d = 760$.

Step2: Use the formula for book - value

The formula for the book - value $V$ of an asset after $n$ years is $V=V_0 - nd$. Here, $n = 4$. Substitute the values into the formula: $V=30400-4\times760$.

Step3: Calculate the book - value

First, calculate $4\times760 = 3040$. Then, $V=30400 - 3040=27360$.

Answer:

$27360$