Ask Question
30 June, 08:52

A compact minivan costs $16,000 with a residual value of $1,000. It has an estimated useful life of five years. If the minivan was bought on July 3, what would be the book value at the end of Year 1 using straight-line rate? A. $14,500 B. $16,000 C. $1,500 D. $12,500

+3
Answers (1)
  1. 30 June, 09:13
    0
    A. $14,500

    Step-by-step explanation:

    The van depreciates ($16000 - 1000 = $15000 in 5 years, so $3000 per year. It will be assumed to depreciate half that amount in half a year, so will be worth $1500 less than $16000 at the end of the first calendar year. The book value will be $14,500.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “A compact minivan costs $16,000 with a residual value of $1,000. It has an estimated useful life of five years. If the minivan was bought ...” in 📗 Mathematics if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers