Cost accounting

Question 1

Declining balance depreciation

Answer 1

𝑝 = 1 − ( √L/I )

p = depreciation percentage rate I = acquisition value
L = residual value
T = useful life

Question 2

Declining balance depreciation

Answer 2

𝑝 = 1 − ( t√L/I )

p = depreciation percentage rate I = acquisition value
L = residual value
T = useful life

Question 3

arithmetic-degressive depreciation

Answer 3

2∙(𝐼−𝐿)
d = ———————
𝑇 ∙ (𝑇 + 1)

d is the step. multiply remaining years with this step to get the depreciation. e.g if useful life is 16.
depreciation is:
- year 1 = 16 * d
- year 2 = 15 * d
- year 3 = 14 * d and so on