DEPRECIATION

1. The book values of an asset after fifth year and seventh year using the straight line method are RM10 000 and RM7 000 respectively. What is the annual depreciation of the asset?

2. A firm bought a lorry for RM58 000. The lorry is expected to be last in five years with a salvage value RM32 000. Find the book value of the machine after four years using the straight line method.

3. A machine costing RM20 000 has a life expectancy of four years and a salvage value of RM8000. Calculated the accumulated depreciation at the en of three years using the declining balance method.