Final answer:
To calculate the value of the computer after 7 years, we subtract the total depreciation over 7 years from the purchase value. However, the result is negative, indicating the computer has depreciated beyond its initial purchase value.
Step-by-step explanation:
The question is asking to calculate the value of an office computer after 7 years given its purchase value and annual depreciation. To find the value after 7 years, we use the formula for straight-line depreciation which is:
Value after n years = Purchase value - (Annual depreciation × Number of years)
Let's plug in the values.
Value after 7 years = $12,360 - ($1,957 × 7)
Calculating the annual depreciation:
$1,957 × 7 = $13,699
Now, let's subtract the total depreciation from the purchase value:
Value after 7 years = $12,360 - $13,699 = -$1,339
In this case, the value is negative which means that the computer has depreciated more than its purchase value after 7 years.