An asset costs 12,000 and has a salvage value of 2,000 after 5years. If sum of years digits method of depreciation is used, findthe book value at the end of year 2
Solution
xxx of yxxxx = x+x+x+x+x=xxxxxxxxxxxxxx xx yxxx 1= x/xx*xxxxx=xxxxxxxxxxxxxxxx year x=x/xx*xxxxx=xxxxxxxx xxxxx xxxxx two yxxxx=xxxxx-xxxx-xxxx=xxxx