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  • Martha buys a duplicating machine for $20,000 with a residual value of 2,000. the estimated life is five years. what is the book value at the end of year 1, assuming the straight line method. please explain the answer. thank you

Martha buys a duplicating machine for $20,000 with a residual value of 2,000. the estimated life is five years. what is the book value at the end of year 1, assuming the straight line method. please explain the answer. thank you

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Asset;value=20000\*Life;time=5;years=n;years\* Scrap;value;or;residual;value=2000\* Straight;line;depreciation;rate= frac20000-200020000 imes 5 imes 100=18;%\* depreciation;at;the;end;of;1;year=18;%;of;20000=frac20000 imes 18100=3600\* Value;at;the;end;of;year;1= 20000-3600=16400\* So,;at;the;end;of;1;year;book;value;will;be;16400.

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Deependra Verma

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