A cupola for a foundry was purchased for $3,000. $500 more was spent on its erection and

Question:

A cupola for a foundry was purchased for $3,000. $500 more was spent on its erection and commissioning. The estimated residual value after 10 years was $700.
a. Calculate the annual rate of depreciation.
b. Determine the amount of depreciation at the end of six years after the purchase of the cupola.