Every computer that a business owner purchases will lose most of its value after 5 years of use. the owner plans to purchase a computer for $2.100 and replace it after 4 years. The business owner bought a computer that cost $2,400 instead of $2,100. the owner plans to replace the computer after 3 years instead of 4 years. Comparing both methods, which statement is true about the remaining value of this computer after 3 years of use ?

Step-by-step explanation:

a) Data and Calculations:

Estimated useful life of a computer = 5 years

Cost of a computer purchased = $2,400

Annual depreciation expense = $480 ($2,400/5)

This means that the business owner chooses to spread (expense) the cost of the computer over 5 years at a rate of $480.

After 3 years, the cost already expensed = $1,440 ($480 * 3)

The Remaining value of this computer after 3 years of use will be $960 ($2,400 - $1,440).

b) Depreciation is an accounting method for spreading (or expensing) the cost of a long-term asset over its useful life.

step-by-step explanation:

we are given a graph for system of inequalities.

in order to write the system of inequalities for the given graph, we need to find the inequality for each of the line separately.

let us find the slope of dotted line first.

taking two coordinates on the graph.

let us say (0,0) and (3,1).

let us find the slope of the line now.

slope of the dotted line would be =.

y-intercept of dotted line is y=0 only.

plugging slope m= and b=0 in slope-intercept form y=mx+b, we get

.

the line is shaded up of that dotted line.

therefore, for shading up we would take greater than inequality symbol > .

and because it's a dotted line we would take only > symbol in place of = sign in above equation of line.

therefore, inequality for dotted line would be

let us take two points (3,1) and (0,4) on the solid line.

slope of the solid line would be =.

for the solid line we have y-intercept b= 4.

plugging slope m= -1 and b=4 in slope-intercept form y=mx+b, we get

y = -1x + 4.

the line is shaded down of that solid line.

therefore, for shading down we would take less than inequality symbol < .

and because it's a solid line we would take ≤ symbol in place of = sign in above equation of line.

therefore, inequality for solid line would be