Answer:
$165,000
Explanation:
The computation is shown below:
But before that first we have to compute the depreciation expense which is
Depreciation per year is
= (Cost - Salvage value) ÷ Useful life
= ($800,000 - $50,000) ÷ 5
= $150,000 per year
Now Total depreciation is
= ($150,000 × 4 years) + ($150,000 × 4 months ÷ 12 months)
= $650,000
So, book value as on date of sale is
= $800,000 - $650,000
= $150,000
Therefore, the paid amount is
= $150,000 + $15,000
= $165,000
