The original cost for a distillation tower is $ 24,000 and the lifetime of the tower is estimated at 8 years. The accumulated fund method was used to determine the depreciation amount and the annual...

The original cost for a distillation tower is $ 24,000 and the lifetime of the tower is estimated at 8 years. The accumulated fund method was used to determine the depreciation amount and the annual interest rate of the depreciation fund is 6 percent. If the scrap value of the distillation tower is $ 4000, determine the book value of the equipment at the end of the 5th year.