Question

The lost value of equipment over a period of time is called depreciation. The simplest method for calculating depreciation is​ straight-line depreciation. The annual​ straight-line depreciation D of an item that costs x dollars with a useful life of n years is D = (1/n)x. Find the depreciation for items with the given characteristics.Cost is ​$15,966​; life is 11 years.

Answer 1

Answer:

$D= \frac{1}{11} 15966 = 1451.454$

And we can conclude that with this method the depreciation each year is about 1451.454$ for the item analyzed.

And we can construct the following table:

year       Depreciation      Ramining value

0                   X                      15966

1               1451.454               14514.545

2              1451.454               13063.091

3              1451.454               11611.638

4              1451.454               10160.183

5              1451.454               8708.729

6              1451.454               7257.275

7              1451.454                5805.821

8              1451.454                4354.367

9              1451.454                2902.913

10             1451.454                1451.454

11              1451.454                     0      

Step-by-step explanation:

Previous concepts

Straight line depreciation is "the default method used to recognize the carrying amount of a fixed asset evenly over its useful life".

Solution for the problem

We assume that the useful life for this problem is 11 years

For this case we have the following function in terms of th years (n) and the initilal price (x)

$D= \frac{1}{n} x$

For this case we have the following values:

$x = 15966$ represent the initial cost for a item

$n = 11$ the year on which we want to find the depreciation

And if we replace these values into our function we got this:

$D= \frac{1}{11} 15966 = 1451.454$

And we can conclude that with this method the depreciation each year is about 1451.454$ for the item analyzed.

And we can construct the following table:

year       Depreciation      Ramining value

0                   X                      15966

1               1451.454               14514.545

2              1451.454               13063.091

3              1451.454               11611.638

4              1451.454               10160.183

5              1451.454               8708.729

6              1451.454               7257.275

7              1451.454                5805.821

8              1451.454                4354.367

9              1451.454                2902.913

10             1451.454                1451.454

11              1451.454                     0