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3 years ago

Bj...

Mathematics

1 answer:

qaws [65]3 years ago

8 0

Answer:

Depreciation and Written Down Value for first 5 years of purchase is explained.

Step-by-step explanation:

The Car was purchased for $18000 this will be depreciated at a rate of 20% per year.

Declining Method

Year 1

$18,000 * 20% = $3,600 Depreciation

$18,000 - $3,600 = $14,400 Written Down Value WDV

Year 2

$14,400 * 20% = $2,880 Depreciation

$14,400 - $2,880 = $11,520 WDV

Year 3

$11,520 * 20% = $2,304 Depreciation

$11,520 - $2,304 = $9,216 WDV

Year 4

$9,216 * 20% = $1,843 Depreciation

$9,216 - $1,843 = $7,373 WDV

Year 5

$7,373 * 20% = $1,475 Depreciation

$7,373 - $1,475 = 5,898 WDV

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