A Company Buys Two Machines

question 61

Multiple Choice

A company buys two machines.Machine A is expected to last 14 years and costs $2450.Machine B is expected to last 10 years and costs $Y.Both machines have a salvage value of $1050 and both use the straight line method of depreciation.At the end of the 9^th year,machine A and machine B have a same book value.What is Y?

• A)$6050
• B)$5400
• C)$2050
• D)$16,550

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Definitions:

Deductive Argument

A type of logical argument in which the conclusion necessarily follows from the premises if they are true.

Valid

In logic, a term describing an argument where, if the premises are true, the conclusion must also be true.

Argument Form

The structure or pattern of reasoning used in constructing a logical argument.

Premises

Statements or propositions from which another is inferred or follows as a conclusion.