Question

For income tax​ purposes, a man uses a method called​ straight-line depreciation to show the loss in value of a copy machine he recently purchased. A man assumes that he can use the machine for years. The following graph shows the value of the machine over the years. What loss in value occurred during the first​ year?

Answer 1

Answer: $500

Explanation:

The vertical axis of the graph represents the value of the copy machine and the horizontal axis represents the years.

Using the line, one can see that in the first year, the value of the machine went from $7,000 to $6,500.

The loss in value is therefore;

= 7,000 - 6,500

= $500

The needed graph is attached.