Original question written by FE Exam AI Prep from the public FE Civil exam specification. Before release, a solver model re-derived the answer twice from the question alone, without its answer key, and a critic model checked the result, and the arithmetic was re-run as an executable calculation. No licensed engineer reviews these questions. It is not an NCEES question and does not come from any NCEES practice exam. FE Exam AI Prep is an independent study tool and is not affiliated with, endorsed by, or sponsored by NCEES.
Straight-Line Depreciation and Book Value: FE Civil practice problem 8
During a quality control worksheet for the East Marsh treatment basin site access project, the project engineer uses straight-line depreciation for an asset with first cost $58000, salvage value $10000, and life of 5 years. What annual depreciation is used?
- A10429 $/yr
- B9600 $/yr
- C12362 $/yr
- D13529 $/yr
Show the answer and worked solution
Answer: B — 9600 $/yr
Worked solution
- Step 1. Use straight-line depreciation
D = (first cost - salvage)/life
- Step 2. Substitute values
D = (58000 - 10000)/5 = 9600 $/yr
Why the other choices are wrong
- Choice A
- This annual charge comes in about $4320 above the correctly computed $9600 depreciation figure and does not reduce to one identifiable substitution into D = (first cost - salvage)/life; divide the $48000 depreciable base by the 5-year life exactly as given rather than inflating the yearly amount.
- Choice C
- This figure sits about $1728 above the verified $9600 depreciation charge without matching a single specific misstep in the straight-line formula; divide the $48000 depreciable base by the full 5-year life instead of a shorter period that inflates each year's charge.
- Choice D
- This annual charge falls about $2112 below the correctly computed $9600 depreciation figure and is not explained by one clean arithmetic slip; divide the full $48000 depreciable base, first cost minus salvage, by the 5-year life without shrinking the numerator.