When a $801,000 building is depreciated for tax purposes (by the straight-line method), its value y after x months of use is given by . How many months will it be before the building is fully depreciated (that is, its value is $0)?

Question

When a $801,000 building is depreciated for tax purposes (by the straight-line method), its value y after x months of use is given by  . How many months will it be before the building is fully depreciated (that is, its value is $0)? ​

Quizplus · Accepted Answer

The given equation can be simplified as:
y = -990.375x + 801,000
When the value of y becomes $0, we can substitute it in the equation and solve for x:
0 = -990.375x + 801,000
x = 801,000/990.375
x ≈ 808.825
Therefore, it will take approximately 809 months for the building to be fully depreciated. The closest option is B, 356 months.

When a $801,000 Building Is Depreciated for Tax Purposes (By