Question: The original cost for a distillation tower is $ 2 4 , 0 0 0 and the useful life of the tower is estimated to

The original cost for a distillation tower is $24,000 and the useful life of the tower is estimated to be 8 years. The sinking-fund method for determining the rate of depreciation is used and the annual interest rate for the depreciation fund is 6 percent. If the scrap value of the distillation tower is $4000, determine book value of equipment at the end of 5 years.

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