The original cost of a Jeep was $35,000 with an estimated life of 5 years. What is the end-of-year book value?
$21,000;
100% ÷ 5 = 20%
20% × 2 = 40%
$35,000 × 40% = $35,000 × 0.4 = $14,000
$35,000 - $14,000 = $21,000
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