Scenario

On 1 July 2017 after joining the local Lapidary club, your friend loved the fossicking trips so much they purchased a 1986 Bundera Landcruiser 4x4 to be used only for that purpose. The price when new was $22,230, however your friend paid $2,500 given its age and condition. One of the wealthy club members offered a $5,000 interest free loan to your friend to purchase the vehicle, pay the registration transfer fee of $100 and to make improvements by adding a bullbar, which cost $1,500 and a recovery winch for $850. Your friend gratefully accepted the loan and promised to pay it back as soon as possible. At the start of the current financial year the loan was still outstanding. When you asked about depreciation and explained the concept, your friend suggested that the most appropriate method of depreciation for the motor vehicle would be the reducing balance method with a rate that was 1.5 times the straight-line rate. The vehicle is expected to be useful for 10 years, after which time the residual value would be nil.

How can I define depreciation? I cannot find the salvage price after 10 years