On the 1/8, a business purchased equipment with cost of 31,000, and scrape value 1000 and useful life 5 years.

On the 1/8, a business purchased equipment with cost of 31,000, and scrape value 1000 and useful life 5 years. fea Amount to be Depreciation Annual dep Accumulated dep Book value depreciated rate 30000 5/15 *5/12 30000 4.58/15 30000 3.58/15 30000 2.58/15 S 30000 1.58/15 30000 0.58/15 Dep rate = 1+2+3+4+5 = 15 First year = 5/12 Last year = 7/12 = 0.58 Exercise: Cost = 42000 scrape value = 2000 useful life = 4 years date = 1/9