"FINANCE: DEPRECIATION, CONSTANT PERCENTAGE (RATE) METHOD. Determine the annual depreciation charge by assuming depreciation charge is madeat year end and is a fixed percentage or rate RATEDEPR of the book value at the beginning ofthe year. Ans(a) Set N=1, NYEARS=6, ORIGCOST=19,200, SCRPVAL=1440. Depreciation rate is 0.351. Ans(b) Setup as in (a) above. Set N=1, then 3 then 6. Results are: Year End Book Val. Depr. Chrg. Depr. Fund 0 19,200 1 12,468 6,732 6,732 3 5,258 2,839 13,942 6 1,440 777 17,760 Type any key to exit. (c) Copyright PCSCC, Inc., 1993 ||(a) A car costing $19,200 has a useful life of 6 years and has a scrap value of $1,440. Find the annual rate of depreciation. (b) Construct a depreciation schedule: book value at year end, depreciation charge and amount in depr. fund for years 1, 3 and 6. Type comma key to see answers. Type (F2) to return to application file."
