Jim Clinnin purchased a used RV with 19,000 miles for $46,000. Originally the RV sold for $70,000 with a residual value of $20,000. After subtracting the residual value, depreciation allowance per mile was $.86. How much was Jim's purchase price over or below the book value?

First, let's find the total amount the RV depreciated: $70,000 (original price) - $20,000 (residual value) = $<<70000-20000=50000>>50,000

Next, let's find the total amount the RV was allowed to depreciate: 19,000 miles * $0.86 per mile = $<<19000*0.86=16340>>16,340
Now let's find the book value of the RV at the time of purchase: $70,000 (original price) - $16,340 (depreciation) = $<<70000-16340=53660>>53,660
Finally, let's find the difference between Jim's purchase price and the book value: $46,000 (purchase price) - $53,660 (book value) = $-<<46000-53660=-7660>>7,660. So Jim's purchase price was $7,660 below the book value. Answer: \boxed{-7660}.

To calculate the book value of the RV, we need to subtract the accumulated depreciation from the original cost of the RV.

Original cost of the RV: $70,000
Residual value: $20,000

Depreciation = Original cost - Residual value
Depreciation = $70,000 - $20,000
Depreciation = $50,000

Now, we need to calculate the accumulated depreciation based on the number of miles on the RV.

Depreciation allowance per mile: $0.86
Number of miles on the RV: 19,000

Accumulated depreciation = Depreciation allowance per mile * Number of miles
Accumulated depreciation = $0.86/mile * 19,000 miles
Accumulated depreciation = $16,340

Finally, we can calculate the book value of the RV.

Book value = Original cost - Accumulated depreciation
Book value = $70,000 - $16,340
Book value = $53,660

To find out how much Jim's purchase price was over or below the book value, we subtract the book value from the purchase price.

Purchase price: $46,000
Book value: $53,660

Purchase price over/under book value = Purchase price - Book value
Purchase price over/under book value = $46,000 - $53,660
Purchase price over/under book value = -$7,660

Therefore, Jim's purchase price was $7,660 below the book value.

To find out how much Jim's purchase price was over or below the book value, we first need to calculate the book value of the RV. The book value is the original selling price minus the accumulated depreciation.

The accumulated depreciation is the depreciation allowance per mile multiplied by the number of miles on the RV. In this case, the depreciation allowance per mile is $0.86 and the RV has 19,000 miles. So, the accumulated depreciation is 0.86 * 19,000 = $16,340.

The book value is calculated by subtracting the accumulated depreciation from the original selling price. In this case, the original selling price is $70,000 and the accumulated depreciation is $16,340. So, the book value is $70,000 - $16,340 = $53,660.

Now we can determine whether Jim's purchase price was over or below the book value. Jim's purchase price is $46,000 and the book value is $53,660.

If the purchase price is above the book value, then Jim paid more than the RV is worth. If the purchase price is below the book value, then Jim paid less than the RV is worth.

Let's calculate the difference:
Purchase price - Book value = $46,000 - $53,660
= -$7,660

The negative value indicates that Jim's purchase price was below the book value by $7,660.