Ask Question
29 August, 08:06

A new building that costs $1,400,000 has a useful life of 10 years and a scrap value of $100,000. Using straight-line depreciation, find the equation for the value V in terms of t, where t is in years. (Make sure you use t and not x in your answer.)

+4
Answers (1)
  1. 29 August, 08:31
    0
    V = $1,400,000 - $130,000t

    Explanation:

    Data provided in the question:

    Cost of the new building = $1,400,000

    Useful life = 10 years

    Scrap value = $100,000

    Now,

    using the straight line method

    Annual depreciation = [ Cost - Scrap value ] : Useful life

    = [$1,400,000 - $100,000 ] : 10

    = $130,000

    Value of building = Cost of the building - Depreciation for 10 years

    V = $1,400,000 - [ Annual depreciation * Time ]

    V = $1,400,000 - $130,000t
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A new building that costs $1,400,000 has a useful life of 10 years and a scrap value of $100,000. Using straight-line depreciation, find ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers