Tina Cole is a certified financial adviser. She purchased equipment for her office for $8,843. The trade-in value of the equipment is estimated to be $450 after 7 years of use. Using the straight-line method, what is the annual depreciation to the nearest cent?

Question

Mathematics

Mckee

2 November, 05:56

Tina Cole is a certified financial adviser. She purchased equipment for her office for $8,843. The trade-in value of the equipment is estimated to be $450 after 7 years of use. Using the straight-line method, what is the annual depreciation to the nearest cent?

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Amy Riley · Answer 1

Straight - line method allows the determination of the annual depreciation by dividing the total reduction in property value by the number of years. In the given above, The total depreciation of the value is $8,393. Dividing this value by 7 years gives $1,199/year.

Therefore, the annual depreciation is $1,199.0