Adam purchased some office furniture five years ago - HSC - SSCE Mathematics Standard - Question 19 - 2021 - Paper 1

To solve for the initial value of the office furniture, we can use the formula for straight-line depreciation:

$S = V_0 - Dn$

Where:

• $S$ is the salvage value,
• $V_0$ is the initial value,
• $D$ is the annual depreciation amount,
• $n$ is the number of years.

In this case:

• Salvage value ($S$) = $7500
• Annual depreciation ($D$) = $2300
• Number of years ($n$) = 5

Substituting the known values into the formula:

$7500 = V_0 - 5 \times 2300$

Now we can rearrange the equation to find the initial value ($V_0$):

$V_0 = 7500 + 5 \times 2300$

Calculating the right-hand side:

$V_0 = 7500 + 11500 = 19000$

Thus, the initial value of the office furniture is $19000.