Suppose you buy a piece of office equipment for $17,000. After 3 years you sell it for a scrap value of $3,000. The equipment is depreciated linearly over 3 years. The rate of depreciation of the piece of equipment is

Question

Mathematics

Grover

9 April, 18:31

Suppose you buy a piece of office equipment for $17,000. After 3 years you sell it for a scrap value of $3,000. The equipment is depreciated linearly over 3 years. The rate of depreciation of the piece of equipment is

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Teagan Fox · Answer 1

Depreciation amount = Purchase Price - Scrape Value

Depreciation amount = $17,000 - $3,000

Depreciation amount = $14,000

depreciation rate = $14,000/3 years

depreciation rate = $4667.67

Joselyn Strickland · Answer 2

Depreciated linearly means straight line depreciation

(Cost - scrap value) / years = amount of annual depreciation