I dont know the methods 25 Harrys Bar purchased a refrigerat

I don\'t know the methods

25. Harry\'s Bar purchased a refrigerated unit at a cost of $32,800. The unit has an estimated life of 10 years and a scrap value of $450. Use the straight-line method of depreciation to find the annual depreciation.

Solution

25) Purchased cost = 32,800 , Scrap value = 450 ,

Rate of depreciation = 1/ useful life * 100% = 1/10 *100% = 10%

Straight line depreciation can be calculated using the following formula

Depreciation per annum = ( Cost Residual Value ) x Rate of depreciation

= (32800 - 450 ) *10%

= 3235