Question

2 ABC Company has a large piece of equipment
that cost $85,600 when it was first purchased 6
years ago. The current value of the equipment is
$30,400. What is the average depreciation of the
equipment per year?
F. $ 5,800
G. $ 9,200
H. $15,200
J. $27,600
K. $42,800

Answer 1

Answer:5,800

Step-by-step explanation:

Answer 2

The average depreciation of the equipment per year is $9200.

What is depreciation?

The monetary value of an asset decreases over time due to use, wear and tear or obsolescence, this is called as depreciation.

Now it is given that,

Cost of the equipment = $85,600

current value of the equipment is given as $30,400

Duration for which the equipment was used = 6 years

Now the depreciation of the equipment is given as,

Total depreciation in the price of the equipment

                       = Cost of the equipment - current price of the equipment

So, total depreciation = $85,600 - $30,400 = $55,200

Now,

Average yearly depreciation = Total depreciation ÷ Years used

Average depreciation = 55,200/6

⇒Average depreciation = $9200

Therefore, average depreciation of the equipment per year is $9200.

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