Central supply:
Life = 8 years. Depreciation rate = 100*2/8 = 25%
Book value at the start of year 1 = 30,000. Depreciation amount = 25% of 30,000 = 7,500
BV at the start of year 2 = 30,000-7,500 = 22,500. Depreciation amount = 25% of 22,500 = 5,625
Thus depreciation for 1st year is 7,500 and for 2nd year is 5,625
Legget & Plat:
a. % of asset being used up in 2011 is:
Depreciation in 2011/gross value of assets, excluding land, in 2011
Depreciation in 2011 = 98.1
Net value of property and plant - land = 580.6-45.2 = 535.4
This is the net value i.e gross value - depreciation for the year
Thus gross value of the assets = 535.4+98.1 (net value +depreciation for 2011)
= 633.5
Thus % of assets used up = 98.1/633.5 = 15.49%
b. If 15.49% of asset is being used up, then useful life = 100%/15.49% = 6.5 years
Thus this is the answer.
To learn more about depreciation, refer: brainly.com/question/25785586
#SPJ4
