- Thread starter harrissj1
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Hello, harrissj1!

An item costs $900, has a scrap value of $50, and a useful life of five years.

The linear equation relating book value and number of years is:

\(\displaystyle \begin{array}{cc}(a)\:BV\,=\,-50x\,+\,850 & \;\;(b)\:BV\,=\,-50x\,+\,900 \\ \,(c)\:BV\,=\,-170x\,+\,850 & \;\;\;(d)\:BV\,=\,-170x\,+\,900\end{array}\)

The item begins with a value of $900 and drops to $50 in five years.

Hence, it depreciates: \(\displaystyle \,\frac{\$900\,-\,50}{5}\:=\:\$170\) per year.

The book value for year \(\displaystyle x\) is: \(\displaystyle \,-170x\,+\,900\) . . . answer (d)

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Please post new questions as new threads.harrissj1 said:Thank you! May I ask you another question?

Thank you.

Eliz.