Answer:
$34,500
Explanation:
Depreciation is the systematic allocation of the cost of an asset to p/l based on its estimated useful life.
Assets are initially recorded at cost be carried subsequently at the net book value which is the cost less residual or salvage value then divided by the estimated useful life. Mathematically, using the straight line method,
Depreciation = (cost - residual value)/useful life
let the residual value ( which is the estimated value obtainable from the disposal of the asset at the end of its estimated useful life) be p
4000 = (66500 - p)/8
32000 = 66500 - p
p = 66500 - 32000
= $34,500
