QuestionFind the annual straight-line depreciation for an item costing \ $15,963 with a life of 13 years. Use$ D=(1/n)x$.

Studdy Solution

STEP 1

Assumptions1. The cost of the item is $15,963. The useful life of the item is13 years3. The depreciation is calculated using the straight-line method, which means the item depreciates at a constant rate every year

STEP 2

The formula for calculating the annual straight-line depreciation is $= \frac{1}{n} \times x$ where- $$ is the annual depreciation, - $n$ is the useful life of the item in years, - $x$ is the cost of the item.

STEP 3

Now, plug in the given values for the cost of the item and the useful life of the item to calculate the annual depreciation.
$= \frac{1}{13} \times \$15,963$

STEP 4

Calculate the annual depreciation.
$= \frac{1}{13} \times \$15,963 = \$1227.92$ The annual straight-line depreciation is approximately $1227.92 per year. However, we need to round this to the nearest cent.

STEP 5

Round the annual depreciation to the nearest cent.
$= \$1227.92 \approx \$1227.92$ The annual straight-line depreciation is approximately $1227.92 per year, rounded to the nearest cent.

Was this helpful?

QuestionFind the annual straight-line depreciation for an item costing \ $15,963 with a life of 13 years. Use$ D=(1/n)x$.

Studdy Solution

STEP 1

Assumptions1. The cost of the item is $15,963. The useful life of the item is13 years3. The depreciation is calculated using the straight-line method, which means the item depreciates at a constant rate every year

STEP 2

The formula for calculating the annual straight-line depreciation is $= \frac{1}{n} \times x$ where- $$ is the annual depreciation, - $n$ is the useful life of the item in years, - $x$ is the cost of the item.

STEP 3

Now, plug in the given values for the cost of the item and the useful life of the item to calculate the annual depreciation.
$= \frac{1}{13} \times \$15,963$

STEP 4

Calculate the annual depreciation.
$= \frac{1}{13} \times \$15,963 = \$1227.92$ The annual straight-line depreciation is approximately $1227.92 per year. However, we need to round this to the nearest cent.

STEP 5

Round the annual depreciation to the nearest cent.
$= \$1227.92 \approx \$1227.92$ The annual straight-line depreciation is approximately $1227.92 per year, rounded to the nearest cent.

Get Studdy

Studdy solves anything!

Start learning now

Download Studdy AI Tutor now. Learn with ease and get all help you need to be successful at school.

QuestionFind the annual straight-line depreciation for an item costing \15,963withalifeof13years.Use15,963 with a life of 13 years. Use 15,963withalifeof13years.UseD=(1/n)x$.

Studdy Solution

STEP 1

Assumptions1. The cost of the item is $15,963. The useful life of the item is13 years3. The depreciation is calculated using the straight-line method, which means the item depreciates at a constant rate every year

STEP 2

The formula for calculating the annual straight-line depreciation is=1n×x = \frac{1}{n} \times x=n1​×xwhere- $$ is the annual depreciation, - $n$ is the useful life of the item in years, - $x$ is the cost of the item.

STEP 3

Now, plug in the given values for the cost of the item and the useful life of the item to calculate the annual depreciation.=113×$15,963 = \frac{1}{13} \times \$15,963=131​×$15,963

STEP 4

Calculate the annual depreciation.=113×$15,963=$1227.92 = \frac{1}{13} \times \$15,963 = \$1227.92=131​×$15,963=$1227.92The annual straight-line depreciation is approximately $1227.92 per year. However, we need to round this to the nearest cent.

STEP 5

Round the annual depreciation to the nearest cent.=$1227.92≈$1227.92 = \$1227.92 \approx \$1227.92=$1227.92≈$1227.92The annual straight-line depreciation is approximately $1227.92 per year, rounded to the nearest cent.

Get Studdy

Studdy solves anything!

Start learning now

Download Studdy AI Tutor now. Learn with ease and get all help you need to be successful at school.

QuestionFind the annual straight-line depreciation for an item costing \ $15,963 with a life of 13 years. Use$ D=(1/n)x$.

The formula for calculating the annual straight-line depreciation is $= \frac{1}{n} \times x$ where- $$ is the annual depreciation, - $n$ is the useful life of the item in years, - $x$ is the cost of the item.

Now, plug in the given values for the cost of the item and the useful life of the item to calculate the annual depreciation.
$= \frac{1}{13} \times \$15,963$

Calculate the annual depreciation.
$= \frac{1}{13} \times \$15,963 = \$1227.92$ The annual straight-line depreciation is approximately $1227.92 per year. However, we need to round this to the nearest cent.

Round the annual depreciation to the nearest cent.
$= \$1227.92 \approx \$1227.92$ The annual straight-line depreciation is approximately $1227.92 per year, rounded to the nearest cent.