Consider that a company bought a machine for 74382 dollars. This equipment is assumed to have a life of 19 years and a salvage value of 1189 dollars. Compute the remaining value recorded in the accounting book for this machine at the end of year 3 based on the straight line depreciation method - standard method, not using US depreciation tables. (note: round your answer to the nearest cent, and do not include spaces, currency signs, plus or minus signs, or commas)
Initial value of the machine = $74382
Salvage value = $1189
Useful life = 19 years
Annual depreciation (straight line method) = (Initial value-salvage value)/useful life
Annual depreciation (straight line method) = (74382-1189)/19
Annual depreciation (straight line method) = $3852.263
So after 3 years,
Remaining value in the books = 74382 – 3*3852.263
Remaining value in the books = $62825.21
So after 3 years, remaining value of machine in the book of accounts is 62825.21 dollars.
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