SOLUTION: A business purchased the computer shown. It will be depreciated over a 5-year period, when it will probably be worth $120. Find the depreciation equation. (Let x represent the numb
Algebra ->
Finance
-> SOLUTION: A business purchased the computer shown. It will be depreciated over a 5-year period, when it will probably be worth $120. Find the depreciation equation. (Let x represent the numb
Log On
Question 1082609: A business purchased the computer shown. It will be depreciated over a 5-year period, when it will probably be worth $120. Find the depreciation equation. (Let x represent the number of years since the computer was purchased, and let y represent the value of the computer.) Answer by addingup(3677) (Show Source):
You can put this solution on YOUR website! Depreciation expense under straight line method is calculated by dividing the depreciable amount of the fixed asset by the useful life of the asset. Depreciable amount equals cost minus salvage value. On this basis:
---
Let the purchase price of the computer be y. The depreciable amount is:
y - 120
The annual depreciation expense for year x will be:
(y - 120)/x =
