Key in the depreciation

Exercise and reference answers

Questions

1. Answer

   10000

   Question

   Cost 100000, residual 10000, life 9 years. What is the yearly straight line depreciation?

2. Answer

   45000

   Question

   Cost 50000 and residual 5000. What is the depreciable amount?

3. Answer

   2000

   Question

   Cost 20000 at 10 per cent written down value. What is the first year's depreciation?

4. Answer

   1800

   Question

   Continuing that asset, what is the second year's depreciation?

Instructions

Work out each answer and key it in on the pad.

Explanation