A machine now in use was purchased four years ago at a cost of $20,000. It has

Question:

A machine now in use was purchased four years ago at a cost of $20,000. It has a book value of $6,246. It can be sold for $7,000, but it could be used for three more years, at the end of which time, it would have no . What is the current amount of economic depreciation for this asset?
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...