Choose the one alternative that best completes the statement or answers the question.
-A new piece of equipment cost a company $54,000. Each year, for tax purposes, the company depreciates the value by 25%.What value should the company give the equipment after 8 years?
A) $7,208
B) $1
C) $3
D) $5,406

Question

Quizplus · Accepted Answer

The value of the equipment after 8 years can be calculated using the formula for depreciation: Final Value = Initial Value * (1 - Depreciation Rate)^Number of Years. Plugging in the values: $54,000 * (1 - 0.25)^8 = $5,406.

Choose the One Alternative That Best Completes the Statement or Answers