Answer to Question #265356 in Economics for Sera

Question

An asset has it original value of 120, 000 pesos has a salvage value of 3% of its original value in 12 years. What is the asset’s value after 8 years of use? Use straight line depreciation method.

Answer 1

The asset’s value after 8 years of use is:

$SV = 120,000 - \frac{120,000×0.97×8}{12} = 42,400.$