Answer:
Book value= 4357882
Explanation:
Giving the following information:
Purchase price= $5,726,489
Useful life= 24 years
Salvage value= $252,069
To calculate the book value, we need to determine the accumulated depreciation. We will use the straight-line method to calculate the annual depreciation:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (5,726,489 - 252,069)/24
Annual depreciation= $228,101.25
Now, the accumulated depreciation:
Accumulated depreciation= 228,101.25*6= $1,368,607.5
Finally, the book value:
Book value= purchase price - accumulated depreciation
Book value= 5,726,489 - 1,368,607.5
Book value= $4,357,881.5
