a new asset costs $5,900, a useful life of 8 years, and a salvage value of $750. the asset will be valued…

a new asset costs $5,900, a useful life of 8 years, and a salvage value of $750. the asset will be valued over time using straight - line depreciation. find the value in the depreciation table for the asset at 3 years. round to the nearest cent if necessary.\n\n| year | value ($) |\n| ---- | ---- |\n| 1 | |\n| 2 | |\n| 3 | 3968.75× |

a new asset costs $5,900, a useful life of 8 years, and a salvage value of $750. the asset will be valued over time using straight - line depreciation. find the value in the depreciation table for the asset at 3 years. round to the nearest cent if necessary.\n\n| year | value ($) |\n| ---- | ---- |\n| 1 | |\n| 2 | |\n| 3 | 3968.75× |

Answer

Explanation:

Step1: Calculate annual depreciation

The formula for straight - line depreciation is $D=\frac{C - S}{n}$, where $C$ is the cost of the asset ($C = 5900$), $S$ is the salvage value ($S = 750$), and $n$ is the useful life ($n = 8$). So, $D=\frac{5900 - 750}{8}=\frac{5150}{8}=643.75$.

Step2: Calculate value after 3 years

The value $V$ of the asset after $t$ years is given by $V = C- D\times t$. Here, $t = 3$, $C = 5900$ and $D = 643.75$. So, $V=5900-643.75\times3=5900 - 1931.25=3968.75$.

Answer:

3968.75