Question

Benz and Jacobs Accounting purchased a new computer system for $3,500. The total resale value after 5 years is estimated to be $525. Using the straight-line method, Benz and Jacobs determined that the computer system would depreciate $595 per year. What is the value of the system at the end of the fourth year?

Answer 1

At the end of 4 years, the 5th year of depeciation hasn't happened yet. The value is $595 more than it is at the end of 5 years.

At the end of the 4th year, the system's value is ...
$525 + 595 = $1120