Question

Rae is saving for a new computer, so she's selling her old antivirus software program for $250. The

software originally cost $985, and she used it for 12 years.
What was the net asset value of Rae's antivirus software two years after her purchase?
O A. $722.50
OB. $755
OC. $825.75
OD. $862.50
OE. $890.75

Answer 1

the net asset value of Rae's antivirus software two years after her purchase was $570.84, which is not one of the given options.

Explanation:

The software was used for 12 years, and Rae is selling it now. So, it has been used for 12 - 2 = 10 years.

Annual depreciation = (cost - salvage value) / useful life = (985 - 0) / 12 = 82.08

Depreciation for 10 years = 82.08 x 10 = $820.80

Net asset value after 2 years = cost - accumulated depreciation = 985 - 82.08 x 2 = $820.84

However, Rae is selling the software for $250, so her net asset value is $820.84 - $250 = $570.84

Therefore, the net asset value of Rae's antivirus software two years after her purchase was $570.84, which is not one of the given options.