Solution-Installment method and the diminishing balance

Installment method and the diminishing balance method

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Reference no: EM131066566

A Lorry is depreciated over a period of 7 years, with an initial cost of £65,000 and an estimated scrap value after 7 years of £2,000.The depreciation is calculated separately using two methods, the equal installment method and the diminishing balance method.

Calculate:

(a) using the equal installment method, the percentage of the initial cost to be written off each year.

(b) using the diminishing balance method, the rate of depreciation.

Reference no: EM131066566

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Installment method and the diminishing balance method

Reference no: EM131066566

Reference no: EM131066566

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