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 4
For the Bayshore water storage yard, a civil analyst preparing a quality-control closeout uses straight-line depreciation for an asset with first cost $78000, salvage value $11000, and life of 6 years. What annual depreciation is used?
- A12051 $/yr
- B14233 $/yr
- C11167 $/yr
- D17053 $/yr
Show the answer and worked solution
Answer: C — 11167 $/yr
Worked solution
- Step 1. Use straight-line depreciation
D = (first cost - salvage)/life
- Step 2. Substitute values
D = (78000 - 11000)/6 = 11166.67 $/yr
Why the other choices are wrong
- Choice A
- This value lands around 22% under the checked total, and no obvious single substitution in the straight-line depreciation formula reproduces it; the stated numbers work out directly to D = (78000 - 11000)/6 = 11166.67 $/yr.
- Choice B
- This figure lands roughly 27% above the true result and cannot be traced to one clean computational misstep in the straight-line depreciation formula; the dependable calculation evaluates to D = (78000 - 11000)/6 = 11166.67 $/yr.
- Choice D
- This figure comes out about 53% higher than the correct value without tracing to one specific dropped or altered step in the straight-line depreciation formula; the dependable computation is D = (78000 - 11000)/6 = 11166.67 $/yr.