Multiple Choice

Your Corporation purchased a car for $25,000.

A) If the car depreciates at 15% annually, with no salvage value, what will be the book value of the car at the end of 5 years?

B) If the car depreciates on a straight-line basis with a salvage value of $5000, what will be the book value of the car at the end of 5 years?

C) If the car depreciates on a double declining basis, with no salvage value, what will be the book value of the car at the end of 5 years?

APPROXIMATELY:

1) $-0-

2) $1,950

3) $5,000

4) $11090

5) None of the above