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 5
For the Oak Point water storage yard, a civil analyst preparing an independent quantity review uses straight-line depreciation for an asset with first cost $78000, salvage value $10000, and life of 6 years. What annual depreciation is used?
- A12598 $/yr
- B11333 $/yr
- C14543 $/yr
- D16039 $/yr
Show the answer and worked solution
Answer: B — 11333 $/yr
Worked solution
- Step 1. Use straight-line depreciation
D = (first cost - salvage)/life
- Step 2. Substitute values
D = (78000 - 10000)/6 = 11333.33 $/yr
Why the other choices are wrong
- Choice A
- This number runs about 11% over the verified total and does not correspond to one identifiable substitution mistake in the straight-line depreciation formula; the direct computation is D = (78000 - 10000)/6 = 11333.33 $/yr.
- Choice C
- This value lands around 18% above the checked total, and no single obvious substitution in the straight-line depreciation formula reproduces it; the stated numbers work out directly to D = (78000 - 10000)/6 = 11333.33 $/yr.
- Choice D
- This total sits roughly 42% over the true result, and no single unit slip, sign flip, or misapplied factor in the straight-line depreciation formula reproduces it cleanly; the reliable path computes D = (78000 - 10000)/6 = 11333.33 $/yr.