Question

One machines value changed by -$6400 over 5 years. THe company charges off such changes in value as depreciation. Each year an equal amount is charged off. What was the change in value that would be charged off each year for this machine?

Answer 1

This problem ends up being a simple division problem.

If the machine's value went down 6400 in 5 years, you just have to divide 6400 by 5 to find the value lost per year.

6400 / 5 years = 1280 / year

Each year, $1280 would be charged off.