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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? clearly explained?
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A fixed asset has a life of 4 years. If it is depreciated by the W.D.V...



Rate of Depreciation Calculation:
1. Given Information:
- Life of fixed asset: 4 years
- Book value at the end of 4 years: 24% of original cost
2. Calculating Depreciation Rate:
- Let the original cost of the asset be x.
- After 4 years, the book value is 24% of x, which is 0.24x.
- The depreciation over 4 years is x - 0.24x = 0.76x.
- The annual depreciation rate is calculated as (0.76x / 4) = 0.19x per year.
3. Rate of Depreciation:
- The rate of depreciation is 0.19x / x = 19%.
Therefore, the rate of depreciation for the fixed asset is 19%.

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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? clearly explained?
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