Appreciation

Question 1

Straight line depreciation

Answer 1

(historic value – residual value)/expected life

Question 2

Reducing balance depreciation

Answer 2

Yr 1 net book value = historic cost - (historic cost x depreciation %)
Yr 2 net book value = yr 1 net book value – (yr 1 net book value x depreciation %)
And so on…..