A truck costs $8,000 with a residual value of $1,000. It has an estimated useful life of 7 years. If the truck was bought on July 9 what would be the book value at the end of year 1?

$7520.55

Step-by-step explanation:

Cost of truck = $8000

Residual value = $1000

Estimated useful life = 7 years

Depreciation = (cost of asset - salvage value) / useful life

Depreciation = (8000 - 1000) / 7

Depreciation = 7000 / 7

Depreciation = $1000

Truck was purchased on July 9, Therefore, Depreciation by the end of year one will be;

Number of days between July 9 and year end = 175 days

Daily Depreciation = $1000 / 365 = $2.739

Total Depreciation by year end = (daily Depreciation * 175 days) = $479.45.

Book value at the end of year 1 = (8000 - 479.45)

= $7520.55

The answer is "$7,500".

Step-by-step explanation:

Formula:

In the month of July-December the depreciation:

Cost-Residual= costs -residual value

Given:

Cost-Residual = $8, 000 - $ 1,00

                        = $7,000

Useful life= 7 years

Put the value in the above-given formula:

Therefore, the book value on point at the end of one year is:

= $8,000 -$ 500

= $7,500

check above link.

graphically?   well, you graph them both, the solutions is where they both intersect each other, since there are two solutions, meaning they will meet twice, or namely the linear will run into the quadratic curve twice, and where they meet, those x,y coordinates are the solutions to the system.

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step-by-step explanation: