Question

Jason purchased a machine for his factory. The value of the machine was $21,500 in 2010. In 2011, the value of the machine was $18,920. In 2012, the value of the machine was $16,649.60, and in 2013, the value of the machine was $14,651.65. Which statement best describes this situation?

Answer 1

The value of the machine in the years are :

2010 = $21500

2011 = $18920

The depreciation in value is : 21500 - 18920 = $2580

2012 = $16649.60

The depreciation in value is : 18920 - 16649.60 = $2270.4

2013 = 14651.65

The depreciation in value is :16649.60 - 14651.65 = $1997.95

The best statement that describes the above analysis is :

The value of the machine depreciates annually.