MATH SOLVE

2 months ago

Q:
# Suppose you buy a piece of office equipment for $17,000. After 3 years you sell it for a scrap value of $3,000. The equipment is depreciated linearly over 3 years. The rate of depreciation of the piece of equipment is

Accepted Solution

A:

Depreciation amount = Purchase Price - Scrape Value

Depreciation amount = $17,000 - $3,000

Depreciation amount = $14,000

depreciation rate = $14,000/3 years

depreciation rate= $4667.67

Depreciation amount = $17,000 - $3,000

Depreciation amount = $14,000

depreciation rate = $14,000/3 years

depreciation rate= $4667.67