Answer: $652,800
Explanation:
Straight Line Depreciation per year = (Cost – Residual Value) / Useful Life
Straight Line Depreciation per year = ($1,030,000 - $87,000) / 5
Straight Line Depreciation per year = $188,600
Accumulated Depreciation at the end of 2017 = Depreciation per year * No. of years used
Accumulated Depreciation at the end of 2017 = $188,600 * 2
Accumulated Depreciation at the end of 2017 = $377,200
Book Value at the end of 2017 = Cost – Accumulated Depreciation at the end of 2017
Book Value at the end of 2017 = $1,030,000 - $377,200
Book Value at the end of 2017 = $652,800
