A graphic design software has a purchase price of $360 and is expected to be fully depreciated over 3 years with no salvage value. What will be its book value at the end of the first year?

With no salvage value, the $360 cost is depreciated evenly over 3 years: $360 ÷ 3 = $120 per year. After the first year, the book value is $360 − $120 = $240, so the correct choice is $240.

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