Answer: $35,332,160
Explanation:
The boik value of the purchase will be calculated thus:
Cost of plant = $43,088,000
Useful life = 15
Savage value = $4,308,800
Depreciation per year = ($43,088,000 - $4,308,800) / 15
= $38779200/15
= $2,585,280
Accumulated depreciation after third year will be:
= $2,585,280 × 3
= $7755840
Book value = $43,088,000 - $7,755,840
= $35,332,160
