Question

the lost value of equipment over a period of time is called depreciation. the simplest method for calculating depreciation is straight - line depreciation. the annual straight - line depreciation d of an item that costs x dollars with a useful life of n years is $d=(1/n)x$. find the depreciation for items with the given characteristics. cost is $15,952; life is 18 yr. the annual straight - line depreciation is approximately $\square$ per year. (round to the nearest cent.)

Explanation:

Step1: Identify variables

Given \( x = 15952 \) (cost), \( n = 18 \) (useful life). Formula: \( D=\frac{1}{n}x \).

Step2: Substitute values

Substitute \( x = 15952 \), \( n = 18 \) into formula: \( D=\frac{15952}{18} \).

Step3: Calculate division

\( \frac{15952}{18}\approx886.22 \) (rounded to nearest cent).

Answer:

886.22