Miguel bought a boat at the beginning of the year for $48,000. The boat has an estimated life of 16 years and a salvage value of $19,000 at the end of the 16-year period. What is the book value after the first year?
$46,187.50;
$48,000 - $19,000 = $29,000
$29,000 ÷ 16 = $1,812.50
$48,000 - $1,812.50 = $46,187.50
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