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
