The Rate of Depreciation of a Machine Is Inversely

question 49

Multiple Choice

The rate of depreciation of a machine is inversely proportional to the square of where V is the value of the machine t years after it was purchased.The initial value of the machine was $500,000 and its value decreased $100,000 in the first year.Estimate its value after 4 years.Round your answer to the nearest integer. ​

• A)$233,333
• B)$133,333
• C)$466,666
• D)$566,667
• E)$500,000

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Definitions:

Carrying Value

The amount at which an asset is recognized on the balance sheet after deducting accumulated depreciation and impairment losses.

Inventory

Goods and materials that a business holds for the ultimate goal of resale.

Declared Dividend

A dividend that has been announced by a company's board of directors to be paid to shareholders on a specified date.

Net Assets

The total value of a company’s assets minus its liabilities, indicating the actual worth of the company’s equity.