Question 7 options:

Farm equipment has a class life of ten years. The equipment is being depreciated using the straight-line depreciation method. The equation for the book value of the farm equipment is as follows. Answer parts a) and b).

Value =120,000-11,000 (Years)

a) Use the equation to determine the book value when the equipment is four years old. When the equipment is four years old, the book value is $________ (type number only, no "$")

Determine when the book value of the equipment will be $98,000.

b) The book value of the equipment will be $98,000 at the end of year ___ (type a whole number)