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Roxy knows that she can deduct the depreciation expense of her ice cream delivery truck from her taxes over the truck’s useful life of 7 years. She can depreciate $2,100 per year. If she paid $19,000 to buy the truck, what is its salvage value?

A. $16,900


B. $8,500


C. $4,300


D. $3,400

User Mike McKay
by
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1 Answer

3 votes

Answer:

C.$4,300

Explanation:

We are given that

Cost of truck=$19,000

Depreciation per year=$21,00

We have to find the salvage value.

Let salvage value=x

Formula:Depreciation per year=
(C.P-salvage\;value)/(number\;of\;years)

Using the formula

Substitute the values then we get


2100=(19000-x)/(7)


2100* 7=19000-x


14700=19000-x


x=19000-14700


x=4300

Hence, the salvage value=$4,300

User Felipe Vasconcelos
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