The lost value of equipment over a period of time is called

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 times 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, 969 life is 11 yr The annual straight-line depreciation is approximately per year (Round to the nearest cent)

Solution

Given that

D = ( 1/n )x

x = $15,969 , n = 11 yr

Hence ,

Annual straight-line depreciation D = ( 1/n)x

= ( 1 / 11 ).15,969

= 15,969 / 11

= $1451.727273 per year

Therefore ,

   Annual straight-line depreciation =  $1451.73 per year