Use the Sum-Of-The-Years'-Digits Method of Depreciation

question 56

Multiple Choice

Use the sum-of-the-years'-digits method of depreciation. Round to the nearest dollar.
-Find the book value at the end of the third year for a service van which cost $16,000, has a life of 8
Years, and an estimated scrap value of $1,600.

• A)$7,600
• B)$10,000
• C)$8,400
• D)$6,000