A set of art supplies is bought for $⁢120 and is expected to be fully used up with no salvage value after 2 years. What is the straight-line depreciation equation for the art supplies?

Straight-line depreciation reduces the original cost by the same amount each year. The supplies cost $120 and have no salvage value after 2 years, so the annual depreciation is ($120 − $0) ÷ 2 = $60. Thus the value after t years is D(t) = 120 − 60t, which is choice D.

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