Number of years = 15 years
Purchase value = 56,804,000
Salvage value = 5,680,400
Annual depreciation = (Purchase value - Salvage value)/ Number of years
Annual depreciation = (56,804,000 -5,680,400)/15
Annual depreciation = 51,123,600/15
Annual depreciation = 3,408,240
Book value after first year of use = Purchase value - Annual depreciation = 56,804,000 - 3,408,240 = 53,395,760
The book value of this purchase (excluding all other plant and equipment) after its first year of use = $ 53,395,760
