Question

What is the rate of depreciation?

Hint:

The straight-line method of depreciation assumes a fixed amount of depreciation each year, calculated as \( \frac{{Cost} - {Scrap Value}}{{Useful Life}} \).

Answer 1

Step 1: The formula for straight-line depreciation is: \[ {Depreciation Rate} = \frac{{Cost} - {Scrap Value}}{{Useful Life}}. \] Step 2: Input the given values: \[ {Depreciation Rate} = \frac{45200 - 0}{3} = 15066.67 \, {per year}. \]