Accounting problem of the day
Today's problem
A machine cost 145000 and is expected to be worth 33400 at the end of 9 years. Using straight line depreciation, what is its book value after 5 years?
Type your answer with two decimals. Within one per cent counts as close, and the arrow points from your answer to the right one.
Yesterday's answer14727.27
How does the accounting problem of the day work?
Everyone gets the same problem today, and it changes at midnight UTC. Read the statement, do the maths, and type what you got. You have eight tries, and each one says whether the right answer is higher or lower than yours.
The answer is not in the page. Only the statement is, because you need it to solve the problem.
Which formulas show up?
Three, and they are the ones every accounting course starts with: book value under straight line depreciation, the cost of goods sold from opening stock plus purchases minus closing stock, and the break even point in units.
None of them depends on tax law. That is deliberate: a rule that changes every January would be out of date inside a calendar written a year ahead.
Why is the break even answer not a whole number?
Because the division rarely lands on one. The exact value is what the formula gives; in practice a business rounds up, since you cannot sell part of a unit and still cover the fixed costs.
How close does my answer have to be?
Within one per cent of the right value counts as close, and the exact value to the second decimal counts as exact. One per cent of the answer itself, not a fixed amount.
Can I use a calculator?
Yes. This is a problem to solve, not a memory test. The site has calculators for depreciation and for break even, and using them is the point of having them.