Answer:
$2,425
Explanation:
Sum of the digits = 10 + 9 + 8+7 +6 + 5+ 4+ 3+ 2 +1 = 55
Depreciation expense :
1st year = 10/55 x $45,000 = $8,182
2nd year = 9/55 x $45,000 = $7364
3rd year = 8/55 x $45,000 = $6,545
4th year = 7/55 x $45,000 = $5,757
5th year = 6/55 x $45,000 = $4,909
6th year = 5/55 x $45,000 = $4,091
7th year = 4/55 x $45,000 = $3,273
8th year = 3/55 x $45,000 = $2,454
Total depreciation = $42,575
Book Value = $45,000 - $42,575 = $2,425
the boiler's book value at the end of year eight is $2,425
