Question

Depreciation is the decrease or loss in value of an item due to age, wear, or market conditions. We usually consider depreciation on expensive items like cars. Businesses use depreciation as a loss when calculating their income and taxes. One company buys a new bulldozer for $136500. The company depreciates the bulldozer linearly over its useful life of 22 years. Its salvage value at the end of 22 years is $14400. A) Express the value of the bulldozer, V, as a function of how many years old it is, t. Make sure to use function notation. B) The value of the bulldozer after 17 years is $

Answer 1

Answer:

Instructions are listed below

Explanation:

Giving the following information:

One company buys a new bulldozer for $136500. The company depreciates the bulldozer linearly over its useful life of 22 years. Its salvage value at the end of 22 years is $14400.

First, we need to find de depreciable value:

Depreciable value= 136,500 - 14,400= 122,100

Straight line depreciation= 122,100/22= 5,550

A)

V= book value - accumulated depreciation

V= 122,100 - X*5550

X= number of years

B) n=17

Value= 122100 - 17*5550= $27,750