What is the book value of a $10000 investment with a 7 year life after 3...
What is the book value of a $10000 investment with a 7 year life after 3 years of straight line depreciation? Show all work.
Homework Answers
SLM annual depreciation ($) = Cost / Useful life = 10,000 / 7 = 1,428.57
Accumulated depreciation in 3 years ($) = Annual depreciation x 3 = 1,428.57 x 3 = 4,285.71
Book value after 3 years ($) = Cost - Accumulated depreciation in 3 years = 10,000 - 4,285.71 = 5,714.29
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What is the book value of a $10000 investment with a 7 year life
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