An asset purchased on january 1, 2015 for $60,000 that has an estimated life of 10 years will have a book value on december 31, 2018

An asset purchased on January 1, 2015 for $60,000 that has an estimated life of 10 years will have a book value on December 31, 2018 of $ 36,000.

Explanation:

Net book value of an asset is equal to cost minus accumlated depreciation of the asset. Accumlated depreciation mean sum of all depreciation charged till date of reporting. So NBV of asset will be calculated as follow

Per year depreciation = 60,000/10 = 6000

NBV = 60,000 - (6000* 4) = $ 36,000

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

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