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26 November, 08:01

Suppose you buy a piece of office equipment for $17,000. After 3 years you sell it for a scrap value of $3,000. The equipment is depreciated linearly over 3 years. The rate of depreciation of the piece of equipment is

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  1. 26 November, 08:14
    0
    Depreciation amount = Purchase Price - Scrape Value

    Depreciation amount = $17,000 - $3,000

    Depreciation amount = $14,000

    depreciation rate = $14,000/3 years

    depreciation rate = $4667.67
  2. 26 November, 08:17
    0
    Depreciated linearly means straight line depreciation

    (Cost - scrap value) / years = amount of annual depreciation
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