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 7
For the Mill Creek detention pond retrofit, a materials reviewer preparing a construction-phase calculation record uses straight-line depreciation for an asset with first cost $58000, salvage value $8000, and life of 5 years. What annual depreciation is used?
- A6163 $/yr
- B11134 $/yr
- C10000 $/yr
- D12639 $/yr
Show the answer and worked solution
Answer: C — 10000 $/yr
Worked solution
- Step 1. Use straight-line depreciation
D = (first cost - salvage)/life
- Step 2. Substitute values
D = (58000 - 8000)/5 = 10000 $/yr
Why the other choices are wrong
- Choice A
- This total is too small to come from one clean substitution error in the straight-line formula; recomputing (first cost - salvage) / life as ($58000 - $8000) / 5 gives the correct annual depreciation of 10000 $/yr.
- Choice B
- This amount runs roughly forty-five percent above the correct depreciation charge and cannot be traced to one clean arithmetic slip; apply (first cost - salvage) / life on $58000, $8000, and 5 years to confirm 10000 $/yr is the right annual figure.
- Choice D
- This figure overshoots the true annual charge without matching any single obvious formula swap; straight-line depreciation is (first cost - salvage) / life, which computes to 10000 $/yr here, not this larger sum.