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Question
Give the formula to find out the amount and rate of depreciation under straight line method of depreciation.
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Solution
Amount of depreciation per year =
`("Original cost of the asset" - "Estimated scrap value")/"Estimated useful life of the asset in years"`
Rate of depreciation =
`"Amount of depreciation per year"/"Original cost" xx 100`
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Solution:
The Double Declining Balance Method applies depreciation:
