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QuizMultiple Choice

Straight-Line Depreciation — Quiz

Question 1 • Advanced Financial Algebra

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?

Answer
A
D⁡(t)=50,000−5,000⁢t
B
D⁡(t)=40,000−4,000⁢t
C
D⁡(t)=50,000−4,000⁢t
D
D⁡(t)=10,000+4,000⁢t

Explanation

The machine depreciates by its purchase price minus its salvage value: $50,000 − $10,000 = $40,000. Spread over 10 years, that is $4,000 per year. Its value after t years is therefore D(t) = 50,000 − 4,000t, which is choice C.

AI-written and checked against the verified answer.

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