Apex Fitness Club uses straight-line depreciation for a machine costing $30,400, with an estimated four year life and a $2,500 salvage value. At the beginning of the third year, Apex determines that the machine has three more years of remaining useful life, after which it will have an estimated $2,050 salvage value. Compute the machine’s book value at the end of its second year. (Do not round your intermediate calculations.) I get $6,975 but it says my answer is incorrect. Maybe i'm doing something wrong?
Price $ 1.00