Answer:
Explanation:
Depreciation in 1st year= 18%×$20,000=18÷100×$20,000= 0.18×$20,000=$3600
New value=$20,000-$3600=$16,400
Depreciation in 2nd year=18% of $16,400=0.18×16,400=$2,952
New value=$16,400-$2,952=$13,448
Depreciation in 3rd year=18% of $13,448=0.18×$13,448=$2,420.64
New value=$13,448-$2,420.64=$11,027
.36