document.write( "Question 905337: A machine costs $8,000 and will have a useful life of 4 years and has a scrap
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document.write( "value of $3200. \r
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document.write( " Assuming straight line depreciation, write an equation to give the book value
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document.write( "of the machine after n number of years \n" );
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Algebra.Com's Answer #549136 by Theo(13342)![]() ![]() You can put this solution on YOUR website! the formula for straight line depreciation is:\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "(cost minus scrap value) / number of years.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "Your depreciation calculation is therefore:\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "annual depreciation = (8,000 - 3,200) / 4 = 4,800 / 4 = 1,200 per year.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "at the end of n years, the book value will be original cost minus depreciation * number of years.\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "this can be shown as b = o - d*n \n" ); document.write( "b = book value \n" ); document.write( "o = original value \n" ); document.write( "d = depreciation per year \n" ); document.write( "n = number ofyears\r \n" ); document.write( " \n" ); document.write( "\n" ); document.write( "at the end of year 0 = 8,000 ***** = original price of vehicle. \n" ); document.write( "at the end of year 1 = 6,800 \n" ); document.write( "at the end of year 2 = 5,600 \n" ); document.write( "at the end of year 3 = 4,400 \n" ); document.write( "at the end of year 4 = 3,200 ***** = scrap value of vehicle.\r \n" ); document.write( " \n" ); document.write( " \n" ); document.write( " \n" ); document.write( " \n" ); document.write( "\n" ); document.write( " \n" ); document.write( " |