document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1208975>Question 1208975</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Supreme Auto Service opened a new service center three decades ago. At the time the center was preparing to open, new equipment was purchased totaling $355,000. Residual value of the equipment was estimated to be $45,000 after 20 years. The company accountant has been using straight-line depreciation on the equipment.<BR>\n" );
document.write( "(a)<BR>\n" );
document.write( "How much was the annual depreciation for the original equipment (in $)?<BR>\n" );
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document.write( "8,000<BR>\n" );
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document.write( "Incorrect: Your answer is incorrect.<BR>\n" );
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document.write( "If the hydraulic lift had originally cost $14,200, what would its residual value (in $) be after 20 years?<BR>\n" );
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document.write( "1800<BR>\n" );
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document.write( "Correct: Your answer is correct.<BR>\n" );
document.write( "(c)<BR>\n" );
document.write( "After six years of operation, the original hydraulic lift was replaced with a new model that cost $21,000. Book value was allowed for the old machine as a trade-in. What was the old hydraulic lift's book value when the replacement machine was bought (in $)?<BR>\n" );
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document.write( "8,000<BR>\n" );
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document.write( "Incorrect: Your answer is incorrect.<BR>\n" );
document.write( "(d)<BR>\n" );
document.write( "What was the book value of the equipment inventory at the six-year point, substituting the new hydraulic lift for the original after the new lift had joined the inventory (in $)?<BR>\n" );
document.write( "$  </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #847546 by </B><A HREF=/tutors/aboutme.mpl?userid=ikleyn><B>ikleyn(52778)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=ikleyn><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=ikleyn><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=847546\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> .<BR>\n" );
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document.write( "(a)  The annual depreciation for the original equipment is\r\n" );
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document.write( "        <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%28355000-45000%29%2F20 ALIGN=MIDDLE  ALT=\"%28355000-45000%29%2F20\"   DISABLED_style= \"max-width:90%; height:auto;\" > = 15,500 dollars.    <U>ANSWER</U>\r\n" );
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document.write( "Solved.\r<BR>\n" );
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