AnswersFinancial MathStraight-Line Depreciation

Straight-Line Depreciation — Quiz Answers

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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?

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
2
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A school's sports team acquires gym equipment for $2,500 , with an expected salvage value of $500 after 5 years. Which equation correctly represents the straight-line depreciation?

A
D⁡(t)=2,000−400⁢t
B
D⁡(t)=2,500−500⁢t
C
D⁡(t)=2,500−400⁢t
D
cap d times t is equal to 2 comma 500 plus 400 t
3

Which statement accurately describes the calculation of depreciation expense in the straight-line depreciation method?

A
The depreciation expense increases each year as the asset ages and its efficiency decreases.
B
The depreciation expense is determined by the market value of the asset at the beginning of each year.
C
The depreciation expense is calculated as the difference between the salvage value and the book value at the end of the asset's useful life.
D
The depreciation expense is the same each year, calculated as the difference between the asset's cost and its salvage value, divided by the useful life of the asset.
4

A printing machine is purchased for $⁢100,000 and is expected to last for 8 years with a salvage value of $⁢20,000 Using straight-line depreciation, what are the coordinates of the y -intercept of the depreciation equation?

A
open paren 0 comma 100 dollars comma 000 close paren
B
open paren 0 comma 10 dollars comma 000 close paren
C
open paren 0 comma 12 dollars comma 500 close paren
D
open paren 0 comma 20 dollars comma 000 close paren
5

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?

A
D⁡(t)=120−60⁢t
B
D⁡(t)=120−50⁢t
C
D⁡(t)=100−50⁢t
D
cap d times t is equal to 120 plus 60 t
6

A student buys a bicycle for $⁢450 to use for getting to school. They expect it to depreciate to $⁢50 over 4 years. What is the straight-line depreciation equation for the bicycle?

A
D⁡(t)=400−100⁢t
B
D⁡(t)=450−90⁢t
C
cap d times t is equal to 450 plus 100 t
D
D⁡(t)=450−100⁢t
7

A high school invests in new computer lab equipment costing $⁢22,000 , expecting it to last 8 years with a salvage value of $⁢2,000 Which equation represents its straight-line depreciation?

A
cap d times t is equal to 22 comma 000 plus 2 comma 500 t
B
D⁡(t)=22,000−2,000⁢t
C
D⁡(t)=22,000−2,500⁢t
D
D⁡(t)=20,000−2,500⁢t
8

A high school science club buys a telescope for $1,500 with an expected useful life of 5 years and a salvage value of $300 What equation represents the straight-line depreciation of the telescope?

A
cap d times t is equal to 1 comma 500 plus 240 t
B
D⁡(t)=1,500−300⁢t
C
D⁡(t)=1,500−240⁢t
D
D⁡(t)=1,200−240⁢t
9

Which statement accurately interprets a component of straight-line depreciation?

A
The depreciation expense varies each year based on the asset's usage.
B
Book value is the amount by which the asset decreases in value each year.
C
The time period column indicates the percentage by which the asset depreciates annually.
D
Accumulated depreciation represents the total amount by which the asset has decreased in value since its purchase.
10

A high school's photography club purchases a new camera for $⁢800 The camera has an expected useful life of 5 years and a salvage value of $⁢100 Which equation represents the straight-line depreciation of the camera?

A
cap d times t is equal to negative 140 t plus 800
B
cap d times t is equal to negative 120 t plus 800
C
cap d times t is equal to negative 140 t plus 700
D
cap d times t is equal to 140 t plus 800

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