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A machinery is bought for 495000 erection charges 5000 scrap value after 9 years is 60000 calculate the depreciation

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Answer: 65000.

Step-by-step explanation:

Annual depreciation = (Acquisition cost - Salvage value) / Useful life in years

Acquisition cost = 495000 + 5000 = 500000

Salvage value = 60000

Useful life in years = 9

Therefore, annual depreciation = (500000 - 60000) / 9 = 48333.33

Therefore, the total depreciation of the machinery over 9 years is 48333.33 * 9 = 435000.

This means that the book value of the machinery at the end of the 9 years will be 500000 - 435000 = 65000.

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