A bulldozer costs £12,150. It will be kept for five years. At the end of that time agreement has already been made that it will be sold for £1,600. Show your calculations of the amount of depreciation each year if {a) the reducing balance method at a rate of 33 Vs per cent was used, {b) the straight line method was used.

20.6A A motor tractor is bought for £6,000. It will be used for three years, and then sold back to the supplier for £3,072. Show the depreciation calculations for each year using {u) the reducing balance method with a rate of 20 per cent, {b) the straight line method.