What is the depreciated value of an imaging system after three years if its acquisition cost was $150,000 and it uses straight-line depreciation?

To determine the depreciated value of the imaging system after three years, we first need to understand the concept of straight-line depreciation. This method allocates an equal amount of depreciation expense for each year over the useful life of the asset.

In this case, the acquisition cost of the imaging system is $150,000. If we assume a typical useful life of, for example, 5 years (a common estimate for equipment), we would calculate the annual depreciation expense by dividing the acquisition cost by the useful life.

Annual depreciation expense = Acquisition cost / Useful life = $150,000 / 5 years = $30,000 per year.

After three years, the total depreciation accumulated would be the annual depreciation multiplied by the number of years:

Total depreciation after three years = Annual depreciation expense x Number of years = $30,000 x 3 = $90,000.

This total depreciation is then subtracted from the initial acquisition cost to calculate the book value (depreciated value) after three years:

Depreciated value = Acquisition cost - Total depreciation = $150,000 - $90,000 = $60,000.

This is why the value $60,000 is the correct answer; it accurately reflects the net worth