BUSINESS, FUR1 2005 VCAA 4 MC

A machine that makes boxes costs `$45\ 000`.
Its value depreciates by five cents for every box it makes.
Each year it makes `120\ 000` boxes.
The depreciated value of this machine at the end of two years is

A. $33 000

B. $38 000

C. $39 000

D. $45 000

E. $115 000

Show Answers Only

`A`

Show Worked Solution

`text(Depreciation)`	`= (120\ 000 xx 2) xx 0.05`
	`= 12\ 000`

`text(Depreciated value)`	`= 45\ 000 − 12\ 000`
	`= 33\ 000`

`=> A`