Depreciation method?

[oregon789]

When you ask your questions of the cost accountant, he decides to give you a hard time, and says "Well, we've had the thing awhile. 7 years I'd say, and we are going to run it until its worth nothing to anybody. If I remember correctly, 5 years ago the book value was $56182 and two years ago it was $27349. So, you go figure it out.
Assuming the depreciation was linear figure out:
What the the company paid for the machine originally and when it will be worth nothing.

I can't come up with an answer for the original cost, but I think it'll be worth nothing in 3 years?

 

[stapel]

When you ask your questions of the cost accountant, he decides to give you a hard time, and says "Well, we've had the thing awhile. 7 years I'd say, and we are going to run it until its worth nothing to anybody. If I remember correctly, 5 years ago the book value was $56182 and two years ago it was $27349. So, you go figure it out.
Assuming the depreciation was linear figure out:
What the the company paid for the machine originally and when it will be worth nothing.

They've given you two data points and asked you to find the straight-line equation through them. So find the slope (here) through the points. Then pick one of the points (it doesn't matter which) and find the line's equation (here). Evaluate at the given x-value and given y-value.

I can't come up with an answer for the original cost, but I think it'll be worth nothing in 3 years?

By what reasoning did you come to this conclusion?

Please be complete. Thank you!