Homework Answers
Initial Cost=C=$20000
Salvage=S=?
Useful life=n=5
Depreciation per year in SL depreciation method=(C-S)/n=(20000-S)/5
Since depreciation is same for all years,
Depreciation for year 4=(20000-S)/5
We are given that depreciation in year 4=$3000
So,
(20000-S)/5=3000
20000-S=15000
S=20000-15000=$5000
Salvage used in calculations is $5000
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