SOLUTION: The federal government allows businesses an income tax deduction for the decrease in value (or depreciation) of capital assets (such as buildings and equipment). One method of calc

Question 1088129: The federal government allows businesses an income tax deduction for the decrease in value (or depreciation) of capital assets (such as buildings and equipment). One method of calculating the depreciation is to take equal amounts over the expected lifetime of the asset. This method is called
straight-line depreciation. For tax purposes, the value V of an asset t years after purchase is figured according to the equation V = -2000t + 12000.
(a) Draw the graph of with V on the y-axis and t on the x-axis. For the y-axis use a scale of $1000 per tick mark. For the x-axis use a scale of 1 year per tick mark.
(b) How much did the asset originally cost?
Plot this point on the graph and label it (1b).
(c) What is the annual deduction for depreciation?
What property of a linear function does this number represent?
(d) What is the value of the asset after 2 years? Show your work!. Plot this point on the graph and
label it (1d).
(e) After how many years will the value of the asset be zero?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!

b. Cost originally was when t=0 or $12000.
c.Annual deduction for depreciation is $2000.
d. This is the slope of a linear function, -2000.
e. After 2 years, V=-2000(2)+12000=$8000.
f. After 6 years, the value of the asset will be 0.
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