1/ A new backhoe costs Bob the Builder $X. It is expected to have a salvage value of $Y after N years. What rate of depreciation for the declining-balance method should Bob be using?

X=825000

Y=63000

N=21 years

Questions:

Depreciation Rate =?

What is the Book Value after 17 years?

2/ Using straight-line depreciation, what is the book value after A years for an asset costing $B that has a salvage value of C after D years?

A= 4 YEARS

B=145000

C= 25000

D= 10 YEARS

QUESTIONS:

What is the Book Value? .

What is the Depreciation Charge in the 5th year?