Answer to Question #197078 in Economics for Millicent

Question

A machine was acquired for R160 000 on 1st July 20x2 and another for R200 000 on 1st January 2010. The economic life of each machine is estimated at four years and the residual value 10% of cost. Machinery is depreciated using the sum of the year's digits method. The depreciation for the year to 31.December 2006 would be______.

Select one:

a. R61 200

b. R54 000

c. R68 400

d. R62 000

Answer 1

The depreciation for the year to 31. December 2006 would be £68,400.

So, the correct answer is c.