a company purchases a machine for $50,000. they expect the machine to have a salvage value of $10,000 after…

a company purchases a machine for $50,000. they expect the machine to have a salvage value of $10,000 after its useful life of 10 years. which equation correctly represents the straight - line depreciation of the machine over its useful life? d(t)=40,000 - 4,000t d(t)=50,000 - 5,000t d(t)=50,000 - 4,000t d(t)=10,000 + 4,000t
Answer
Explanation:
Step1: Calculate total depreciation amount
The initial cost of the machine is $50,000 and the salvage - value is $10,000. The total depreciation amount over 10 years is $50,000 - $10,000=$40,000.
Step2: Calculate annual depreciation
The useful life is 10 years. So the annual depreciation is $\frac{40,000}{10} = 4,000$.
Step3: Form the depreciation equation
The initial value of the machine is $50,000. The value of the machine $D(t)$ after $t$ years using straight - line depreciation is given by $D(t)=50,000 - 4,000t$.
Answer:
$D(t)=50,000 - 4,000t$