Answer: The salvage value of the furniture is $1000.
Step-by-step explanation:
The salvage value is the estimated resale value of an asset at the end of its useful life.
Given: The cost price of the furniture = $16000
Since the furniture has an estimated life of 10 years and has an annual depreciation of $1,500.
The salvage value=[tex]\$16000-10\times\$1500[/tex]
⇒ The salvage value=[tex]\$16000-15000=\$1000[/tex]
hence, the salvage value of the furniture is $1000.
