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a building is puchased for 60,000 and is to be totally depreciated by the stright-line method over a 20-year period.
a) what is the amount to be depreciated each year?
b) find a linear function that expresses the book value of the building as a function of years from the date of purchase.
a. Straight-line method over 20 years is 1/20th per year (I think. I'm not an accountant). 1/20 of 60,000 = 1/20 x 60,000.Quote:
A building is purchased for 60,000 and is to be totally depreciated by the straight-line method over a 20-year period.
a) what is the amount to be depreciated each year?
b) find a linear function that expresses the book value of the building as a function of years from the date of purchase.
b. Linear function: Y=mX + b
Y is the book value; X is the number of years. X is the slope (1/20); b is the Y-intercept = 0
Yes, that's correct.Quote:
a. Straight-line method over 20 years is 1/20th per year (I think. I'm not an accountant). 1/20 of 60,000 = 1/20 x 60,000.
How about 60,000 - 3000y. Which is actually a lot closer to the way it would really be done in accounting. Though applying algebra to depreciation seems a little silly to me.Quote:
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