Question: A machine costs 8,000. It will be kept for five years, and then sold for an estimated figure of 2,400. Show the calculations of the

A machine costs £8,000. It will be kept for five years, and then sold for an estimated figure of £2,400. Show the calculations of the figures for depreciation (to nearest £) for each of the five years using

(a) The straight line method,

(b) The reducing balance method, for this method using a depreciation rate of 20 per cent.

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