SOLUTION: A mainframe computer whose cost is K220, 000 will depreciate to a scrap value of K12, 000 in 5 years. If the reducing balance method of depreciation is used, find the depreciation

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Question 1160941: A mainframe computer whose cost is K220, 000 will depreciate to a scrap value of K12, 000 in 5 years. If the reducing balance method of depreciation is used, find the depreciation rate.
Answer by amarjeeth123(575) About Me  (Show Source):
You can put this solution on YOUR website!
Depreciation = Cost of Machine x Rate
Rate = 1 - (Scrap / Cost of Machine)^(1/Years)
Depreciation Rate=0.44 or 44%
Answer=44%