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A three-year-old machine has a cost of $26,900, an estimated residual value of $2,900, and an estimated useful life of 40,000

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Answer : $ 15,530

Depreciation Rate Per Unit = ( Cost - Salvage Value )/ USeful Life in MH = ( 26,900-2,900) /40,000 = 0.60 Per MH

Depreciation During the Three Years = ( 4,700+6,250+8,000) *0.60 = 11,370

Book Valeu at the End of the Third year = 26,900-11,370 =15,530 (Answer)

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