Question

A company that makes wildlife videos purchases camera equipment for $32,400. The equipment depreciates in value at a constant rate for 12 years, after which it is considered to have no monetary value. How much is the camera equipment worth 4 years after it is purchased?

A)

$10,800



B)

$16,200

Eliminate


C)

$21,600



D)

$29,700

Answer 1

C) $21,600

correct answer

Answer 2

C

Explanation:

yearly depreciation

32,400÷12

=2,700

Accumulated depreciation for 4 years

2,700×4

=10,800

Book value at year 4

32,400−10,800

=21,600