Answer:
Book value= $51,875
Explanation:
Giving the following information:
Purchase price= $80,000
Salvage value= $5,000
Useful life= 8 years
<u>First, we need to calculate the annual depreciation under the straight-line method:</u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (80,000 - 5,000) / 8
Annual depreciation= $9,375
<u>Now, we can determine the book value at the end of 2019:</u>
Book value= purchase price - accumulated depreciation
Book value= 80,000 - (9,375*3)
Book value= $51,875