$80000 is the book value of the capital equipment at the end of three years.
Annual Depreciation under straight-line method = (cost - salvage value) / life
= (400000 - 0) / 5
= 80000
Capital equipment is a piece of writing of nonexpendable, tangible assets with a beneficial life of a couple of yr, and an acquisition fee of $5,000 or more in keeping with the unit.
The $5,000 value threshold consists of The item itself; fees essential to position the item in the vicinity; and.
Capital goods are guy-made, long-lasting items that corporations use to supply goods and offerings. equipment, equipment, buildings, motors, computer systems, and construction equipment are styles of capital items.
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