Homework Answers
The Cost price of the machine = $29,000 (four years ago)
The book value of machine - $8,893
The sale price of the machine - $10,000
The Economic Depreciation can be computed as shown below:-
The present value of Economic Depreciation = Purchase Price -
Market Price
= $29,000 - $10,000
= $19,000
Hence, the present value of economic depreciation is $19,000
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