Answer:
Book value on 31 december 2017 = $44900
Explanation:
The staright line depreciation calculates depreciation charge as a constant charge throughout the useful life of the asset.
The formula for staright line depreciation expense is,
Depreciation expense per year = (Cost - Residual value) / estimated useful life
Thus, the depreciation expense per year on delivery vehicle will be,
Depreciation expense = (58300 - 4700) / 8 => $6700 per year
The book value of vehicle on 31 december 2017 will be,
Book value = Cost - Accumulated depreciation
Book value = 58300 - (6700*2) => $44900
