Answer:
see below
Explanation:
In straight-line depreciation, depreciation is a constant figure throughout the useful life of an asset.
The depreciation rate = 1/useful life x 100
For Jimmy's pizza depreciation rate
=1/12 x 100
=8.333%
The depreciable rate = Asset cost - salvage value
=$7,276 - $400
=$6,876
Annual depreciation = 8.333% x $6,876
=0.08333 x $6,876
=$573 per year
Book value after 8 years
=Asset value minus accumulated depreciation.
Accumulated depreciation = annual depreciation x number of year
Accumulated depreciation = $573 x 8
Accumulated depreciation= $4,584
Book value =$7,276 - $4,584
= $2,692
