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A Lorry is depreciated over a period of 7 years, with an initial-(Answered)

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?A Lorry?is depreciated over a period of 7 years, with an initial cost of ?65,000 and an estimated scrap value after 7 years of ?2,000.The depreciation is calculated separately using two methods, the equal installment method and the diminishing balance method.

Calculate:

? ? ? ? ? ? ? ? ?(a) using the equal installment method, the percentage of the initial cost to be written off each year.

? ? ? ? ? ? ? ? ?(b) using the diminishing balance method, the rate of depreciation.

? ? ? ? ? ? ? ? ?(c) the year in which the two methods give amounts of depreciation that are closest to each other.show your working.

 

Paper#9256927 | Written in 27-Jul-2016

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