1. **State the problem:** We are given the book value at the end of the third year, accumulated depreciation at the end of the fifth year, and the asset's lifespan. We need to find the cost and salvage value of the asset using the straight line depreciation method. 2. **Recall the straight line depreciation formula:** $$\text{Depreciation per year} = \frac{\text{Cost} - \text{Salvage value}}{\text{Lifespan}}$$ 3. **Define variables:** Let $C$ = cost of the asset, $S$ = salvage value, $L = 10$ years. 4. **Use book value formula:** $$\text{Book value at year } t = C - t \times \text{Depreciation per year}$$ Given book value at end of year 3 is 113000: $$113000 = C - 3 \times \frac{C - S}{10}$$ 5. **Use accumulated depreciation formula:** Accumulated depreciation at end of year 5 is 65000: $$65000 = 5 \times \frac{C - S}{10}$$ 6. **Simplify accumulated depreciation equation:** $$65000 = \frac{5}{10} (C - S) = \frac{1}{2} (C - S)$$ Multiply both sides by 2: $$2 \times 65000 = C - S$$ $$130000 = C - S$$ 7. **Substitute $C - S = 130000$ into book value equation:** $$113000 = C - 3 \times \frac{130000}{10} = C - 3 \times 13000 = C - 39000$$ 8. **Solve for $C$:** $$113000 = C - 39000$$ Add 39000 to both sides: $$113000 + 39000 = C$$ $$152000 = C$$ 9. **Find salvage value $S$:** Recall $C - S = 130000$: $$152000 - S = 130000$$ Subtract 130000 from both sides: $$152000 - 130000 = S$$ $$22000 = S$$ **Final answers:** - Cost of the asset $= 152000$ - Salvage value of the asset $= 22000$