a certain car was purchased for $36,000. the car has a resale value of $28,200 after a useful life of 6…

a certain car was purchased for $36,000. the car has a resale value of $28,200 after a useful life of 6 years. what is the book value of this car after 4 years? annual depreciation expense = $1,300 book value = $? round to the nearest hundredth.

a certain car was purchased for $36,000. the car has a resale value of $28,200 after a useful life of 6 years. what is the book value of this car after 4 years? annual depreciation expense = $1,300 book value = $? round to the nearest hundredth.

Answer

Explanation:

Step1: Calculate total depreciation in 4 years

Annual depreciation is $1300$. For 4 years, total depreciation = $1300\times4$. $$1300\times4 = 5200$$

Step2: Calculate book value

Book value = Purchase price - Total depreciation. Purchase price is $36000$. $$36000 - 5200=30800$$

Answer:

$30800$