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The straight line depreciation equation for a car is -2750 2200. What does this equation represent?

a. Initial cost and salvage value of the car
b. Annual depreciation of the car
c. Time and rate of depreciation of the car
d. Accumulated depreciation of the car

1 Answer

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Final answer:

The straight line depreciation equation mentioned does not follow the standard format but likely indicates the initial cost and salvage value of the car. The annual depreciation is typically calculated as the difference between the initial cost and salvage value over the asset's useful life.

Step-by-step explanation:

The straight line depreciation equation for a car, presented as -2750 2200, likely represents the initial cost and salvage value of the car. However, the typical format for such an equation would express an amount of depreciation each year, based on the initial cost of an asset, its salvage value after a number of years, and its useful life. An equation in the format of y = mx + b where m is the annual depreciation and b is the initial cost minus the salvage value, would better represent this financial concept.

Without additional context, the values -2750 and 2200 should be considered the initial cost and salvage value respectively, where the annual depreciation would be calculated as the difference between these divided by the number of years of useful life of the car.

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