Question 133354
4800*.25=1200 IS THE ANNUAL DEPRECIATION.
FIRST YEAR AFTER PURCHASE - 4800-1200=3600
SECOND YEAR 3600-1200=2400
THIRD YEAR 2400-1200=1200
FOURTH YEAR 1200-1200=0 NO VALUE LEFT.
OR IF IT IS 25% OF THE REMAING VALUE THEN WE HAVE:
4800*.75=3600 @ THE END OF YEAR 1
3600*.75=2700 @ THE END OF YEAR 2
2700*.75=2025 @ THE END OF YEAR 3
2025*.75=1518.75 @ THE END OF YEAR 4
1518.75*.75=1139.O6 @ THE END OF YEAR 5.
1139.06*.75=854.30 @ THE END OF YEAR 6 ETC.