Question

Find rate of depriciation under SLM when cost value of machinary is 1,20,000 and rsidual value 72,000 life of matchinery 4 years

Answer 1

depreciation by the method SLM

depreciation = cost value of the product - scrap value/ given time

in this case the solution will be

depreciation = 120000-72000/4


= 48000/4

= 14000

and as we know that in this method the depreciation remains the same for all years

Answer 2

Depreciation by SLM method is same for all the years

depreciation=(cost of the asset-residual value)/life of the asset

                    =120000-72000/4

                    =12000

Rate of depreciation = Depreciation amount/cost of the asset

                                  =12000/120000*100

                                  =10%

Hope this helps........