A farmer buys a new tractor for $152,000 and assumes that it will have a trade-in value of $87,000 after 10 years. The farmer k the tractor. (A) Find a linear model for the depreciated value V of the tractor t years after it was purchased. V=-6500t + 152000 (B) What is the depreciated value of the tractor after 6 years? The depreciated value of the tractor after 6 years is $
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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A farmer buys a new tractor for $152,000 and assumes that it will have a trade-in value of $87,000 after 10 years. The farmer k the tractor. (A) Find a linear model for the
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