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. A fixed asset has a life of 4 years. If it is depreciated by the W.D.V method, its book value at the end of 4 years is 24% of its original cost. What is the rate of depreciation?
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. A fixed asset has a life of 4 years. If it is depreciated by the W.D...
Rate of Depreciation Calculation


  1. Given:
    • Life of the fixed asset = 4 years
    • Book value at the end of 4 years = 24% of the original cost




  2. Formula:
    • Let the original cost be x
    • Depreciation for each year = (x/4) * rate of depreciation
    • Book value at the end of 4 years = x - 4*(x/4)*rate of depreciation
    • Given: x - 4*(x/4)*rate of depreciation = 0.24x




  3. Solving for Rate of Depreciation:
    • x - x*rate of depreciation = 0.24x
    • rate of depreciation = (x - 0.24x) / x
    • rate of depreciation = 0.76
    • Therefore, the rate of depreciation is 76%




By following the above steps, we can calculate the rate of depreciation for the fixed asset using the given information and formula for the W.D.V method of depreciation.
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. A fixed asset has a life of 4 years. If it is depreciated by the W.D.V method, its book value at the end of 4 years is 24% of its original cost. What is the rate of depreciation?
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