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QuizMultiple Choice

Straight-Line Depreciation — Quiz

Question 1 • Financial Math

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
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