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5 September, 22:04

Suppose you buy a piece of office equipment for $9,000.00. After 5 years you sell it for a scrap value of $2,000.00. The equipment is depreciated linearly over 5 years. The value of the piece of equipment after 2 years is (rounded to the nearest whole dollar)

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  1. 5 September, 22:23
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    Residual value = $2000

    $7000/5 = $1400

    Yearly depreciation = $1400

    So in 2 years total depreciation = $2800.

    Value = Purchase Price - Total Depreciation

    Value = $9000 - $2800

    Value after 2 years = $6200
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