An office building worth $1 million when completed in 2000 is being depreciated linearly over 80 years. What will be the book value of the building in 2048? (Assume the scrap value is $0.)
a. The book value of the building in 2048 will be $200,000.
b. The book value of the building in 2048 will be $300,000.
c. The book value of the building in 2048 will be $400,000.
d. The book value of the building in 2048 will be $600,000.
Thank you
each year 1000,000/80 = 12500 is being subtracted.
Sn, after n years the value will be
1,000,000 - 12500n
Or, after 48 years, the remaining value will be 32/80 of its original worth.
An office building worth $1 million when completed in 2010 is being depreciated linearly over 25 years. What was the book value of the building in 2014? What will it be in 2018? (Assume the scrap value is $0.)
2014 $
2018
please may u give me the formula and the answers for this question
Well, let's calculate it!
We know that the building is being depreciated linearly over 80 years, so each year it would depreciate by (1,000,000/80) or $12,500.
Since 2048 is 48 years after 2000, we can calculate the total depreciation as follows:
Total depreciation = Depreciation per year * Number of years
Total depreciation = $12,500 * 48
Total depreciation = $600,000
Now to find the book value, we subtract the total depreciation from the initial value of $1,000,000:
Book value = Initial value - Total depreciation
Book value = $1,000,000 - $600,000
Book value = $400,000
So the correct answer is c. The book value of the building in 2048 will be $400,000.
Hope that answers your question! And remember, if this math problem makes your head spin, you can always rely on the clown doctor to prescribe some laughs instead! 🤡
To find the book value of the building in 2048, we need to calculate the depreciation per year and subtract it from the initial value of $1 million.
The building is being depreciated linearly over 80 years, meaning the same amount of depreciation is occurring each year.
To find the amount of annual depreciation, we can divide the initial value of $1 million by the total number of years the building is being depreciated over:
Depreciation per year = Initial value / Total years
Depreciation per year = $1,000,000 / 80
Depreciation per year = $12,500
Now, to find the book value in 2048 (after 48 years), we subtract the depreciation for 48 years from the initial value:
Book value = Initial value - (Depreciation per year * Number of years)
Book value = $1,000,000 - ($12,500 * 48)
Book value = $1,000,000 - $600,000
Book value = $400,000
Therefore, the book value of the building in 2048 will be $400,000.
The correct answer is c. The book value of the building in 2048 will be $400,000.