math, depreciation

A workcenter system purchased at a cost of $60,000 in 2015 has a scrap value of $12,000 at the end of 4 years. If the straight-line method of depreciation is used.
a) find the rate of depreciation.
b) Find the linear equation expressing the system's book value at the end of t years
c) Find the system's book value at the end of the third year

I need someone to check my work to make sure I'm on the right page.
My answers:
A) m= 60,000-12,000/0-4 =-48,000/4=-12,000
rate of depreciation = -12,000.

B) I used point slope form for this one.
v-60,000=-12,000(x+0)
v-60,000+60,000=-12,000x+0
v=-12,000x+0

C) V= -12,000(3)+0
=-36,000

  1. 👍
  2. 👎
  3. 👁
  1. Please read this carefully and think about it. It starts out at 60 k and goes down, line slopes down from y = 60 at x = 0 to y = 0 at x = 5

    (60-12)/4 = 12 thousand /year if straight line (agree with you)
    so m, slope = -12,000 per year

    b) value = 60,000 - 12,000 t
    in form y = m x + b that is
    y = -12,000 x + 60,000
    Yours is not 60,000 at t (or x) = 0

    c) if t = 3
    value = 60,000 - 12,000 *3
    = 60,000 - 36,000
    = 24,000

    1. 👍
    2. 👎
    👤
    Damon

Respond to this Question

First Name

Your Response

Similar Questions

  1. MATH

    Jones Company had 100 units in beginning inventory at a total cost of $10,000.The company purchased 200 units at a total cost of $26,000. At the end of the year, Jones had 80 units in ending inventory. Compute the cost of the

  2. math

    You are given the dollar value of a product in 2015 and the rate at which the value of the product is expected to change during the next 5 years. Write a linear equation that gives the dollar value V of the product in terms of the

  3. accounting

    The following transactions occurred during March 2009 for the Wainwright Corporation. The company owns and operates a wholesale warehouse. 1. Issued 30,000 shares of common stock in exchange for $300,000 in cash. 2. Purchased

  4. math

    Given is the Income Statement for the year ended December 31, 2015, Statement of Retained Earnings for the year ended December 31, 2015 and Comparative Balance Sheets for 2014 and 2015 of Maris Corporation: Maris Corporation

  1. Algebra

    The management of Hartman Rent-A-Car has allocated $1.92 million to buy a fleet of new automobiles consisting of compact, intermediate-size, and full-size cars. Compacts cost $16,000 each, intermediate-size cars cost $24,000 each,

  2. Engineering Economics

    A granary has two options for a conveyor used in the manufacture of grain for transporting, filling, or emptying. One conveyor can be purchased and installed for $70,000 with $3,000 salvage value after 16 years. The other can be

  3. Accounting

    A company using the periodic inventory system has the following account balances: Merchandise Inventory at the beginning of the year, $4,000; Transportation-In, $450; Purchases, $12,000; Purchases Returns and Allowances, $2,300;

  4. substitution

    Tickets to a movie cost $7.25 for adults and $5.50 for students. A group of friends purchased 8 tickets for $52.75. Write a system of equations to represent the situation. How many adult tickets and student tickets were purchased?

  1. accounting

    2. Illustrate effects on the accounts and financial statements of each of the following transactions. For a company using a job order cost system: (a) Materials purchased on account $176,000 (b) Materials requisitioned: For

  2. Accounting help

    Cost flow assumptions-FIFO and LIFO using a periodic system. Beginning inventory was 600 units at a cost of $20 per unit. Goods available for sale during the year 2600 units at a total cost of $57,600. In May 1200 units were

  3. math

    A house was purchased for $140,000. Three years later, the value of the house was $155,000. If the value V of the house increased linearly from the date it was purchased, which of the following represents the value, in dollars, of

  4. Finance

    Michigan Corporation purchased a new truck on January 1, 2013 for $55,000 cash. Michigan estimated salvage value of $10,000 at the end of the useful life of 5 years. On January 1, 2015 Michigan had to replace the engine of the

You can view more similar questions or ask a new question.