A computer equipment was acquired at the beginning of the year at a cost of $56,000 with an estimated residual value of $5,000, and an estimated useful life of 5 years. What is the assets book value at the end of year 3?

=$25,400

Explanation:

The cost of the compute was $56,000

The residual value was 5000

Useful life is 5 years

Using the straight-line depreciation method, book value after three years will be

The depreciable amount will be the asset cost value - residual value

= $56,000 - $5000

= $51,000

The depreciation rate will be 1/5 year x 100 = 20%

depreciation per year will be 20% x 51,000

= 20/100 x 51,000

=$10,200

Depreciation for three years will be $10,200 x 3= $30,600

The book value after 3 years :

Book value = original cost - accumulated depreciation

= $56,000 - $30,600

=$25,400

Book value = original cost - accumulated depreciation

= $56,000 - $30,600

=$25,400

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answer; descriptive statistics;