a manufacturing company purchases upgraded machinery for $17,600. the useful life of the upgrade is 7 years…

a manufacturing company purchases upgraded machinery for $17,600. the useful life of the upgrade is 7 years, and the salvage value is $1,535. to the nearest dollar, what is the common difference for the explicit formula representing the straight - line depreciation for the purchase? d = □

a manufacturing company purchases upgraded machinery for $17,600. the useful life of the upgrade is 7 years, and the salvage value is $1,535. to the nearest dollar, what is the common difference for the explicit formula representing the straight - line depreciation for the purchase? d = □

Answer

Explanation:

Step1: Identify the formula for straight - line depreciation

The formula for the common difference $d$ (annual depreciation) in straight - line depreciation is $d=\frac{\text{Cost}-\text{Salvage Value}}{\text{Useful Life}}$.

Step2: Substitute the given values

The cost of the machinery is $$17600$, the salvage value is $$1535$, and the useful life is $7$ years. So $d = \frac{17600 - 1535}{7}$.

Step3: Calculate the value

First, calculate the numerator: $17600-1535 = 16065$. Then, divide by the useful life: $d=\frac{16065}{7}=2295$.

Answer:

$2295$