Question

9. The cost of a machine depreciated by 4,000
during the first year and by * 3,600 during the
second year. Calculate :
(i) the rate of depreciation.
(ii) the orginal cost of the machine.
(iii) its cost at the end of the third year.​

Answer 1

Step-by-step explanation:

(i) depreciation in second year= cost of machine in first year - cost machine in second year

=4000-3600

=400

rate of depreciation=depreciation/change in amount of machine,×100

=400/3600×100

=11.1%

(ii) the original cost of machine= the cost of machine in first year+ the cost of machine in second year

=4000+3600

=7600

(iii) the cost of machine in third year=the cost of second year - amont of depreciation

=3600-400

=3200