1 A machine costs £8,000. It will be kept for five years, and then sold for an estimated figure of £2,400. Show the calculations of the figures for depreciation (to nearest £) for each of the five...

1

A machine costs £8,000. It will be kept for five years, and then sold for an estimated figure

of £2,400. Show the calculations of the figures for depreciation (to nearest £) for each of the five

years using (a) the straight line method, (b) the reducing balance method, for this method using a

depreciation rate of 20 per cent.

2

A car costs £9,600. It will be kept for three years, and then sold for £2,600. Calculate the

depreciation for each year using (a) the reducing balance method, using a depreciation rate of

50 per cent, (b) the straight line method.