Question: A machine is bought for 18,000, plus 3,000 installation costs. It is to be depreciated on a diminishing balance basis using a rate of 60%

A machine is bought for £18,000, plus £3,000 installation costs. It is to be depreciated on a diminishing balance basis using a rate of 60% p.a. What is the depreciation to be charged in the second year of the asset’s ownership?

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