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Kamal wants to sell a jeep which has been used for seven years. The vehicle costs him RM62,000 when it was purchased brand new. The
Kamal wants to sell a jeep which has been used for seven years. The vehicle costs him
RM62,000 when it was purchased brand new. The jeep is estimated to have a scrap
value of RM8,000 after 15 years. He asked two agents to sell his vehicle. Agent A uses
the sum-of-year digits method to calculate depreciation while agent B uses the
declining balance method.
a) Construct the depreciation schedule for the first seven years.
b) Which agent should Kamal choose to sell his jeep?
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