A carpet company purchased a new loom for $280,000. For income tax purposes, company accountants will use the straight-line depreciation model $y = - 17,500 x + 280,000$ to describe the declining value of the loom. When will the loom be one-half of its purchase price?
A) 4 years
B) 8 years
C) 12 years
D) 16 years

Question

Quizplus · Accepted Answer

To find when the loom will be one-half of its purchase price, we set $y = \frac{1}{2} \times 280,000 = 140,000$. Substituting into the equation gives $140,000 = -17,500x + 280,000$. Solving for $x$ gives $x = 8$ years.

A Carpet Company Purchased a New Loom for $280,000 y=−17,500x+280,000y = - 17,500 x + 280,000y=−17,500x+280,000

A Carpet Company Purchased a New Loom for $280,000 $y = - 17,500 x + 280,000$