Question

If a piece of equipment cost 21,000 new and the equipment was worth 75% of its new value after 4 years what is its salvage value after 10 years

Answer 1

assuming straight-line depreciation, then it will have lost

(10/4)(.25) = .625 = 5/8 of its value

So, it will be worth 3/8 of 21000 or $7875