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Convert each of the following estimates of useful life to a straight-line depreciation rate, stated as a percentage: (a) 10 years, (b) 8 years, (c) 25 years, (d) 40 years, (e) 5 years, (f) 4 years, (g) 20 years. If required, round your answers to one decimal place.

Respuesta :

Answer:

a.10 years 1 / 10 x 100 10% per year

b. 8 years 1 / 8 x 100 12.5% per year

c. 25 years 1 / 25 x 100 4% per year

d. 40 years 1 / 40 x 100 2.5% per year

e. 5 years 1 / 5 x 100 20% per year

f. 4 years         1 / 4 x 100 25% per year

g. 20 years 1 / 20 x 100 5% per year

Step-by-step explanation:

Under straight line method of depreciation, equal amount of the depreciation is reduced throughout the useful life of the asset. Using the following formula:

Straight line depreciation rate = 1 / Useful Life x 100

So:

a.10 years 1 / 10 x 100 10% per year

b. 8 years 1 / 8 x 100 12.5% per year

c. 25 years 1 / 25 x 100 4% per year

d. 40 years 1 / 40 x 100 2.5% per year

e. 5 years 1 / 5 x 100 20% per year

f. 4 years         1 / 4 x 100 25% per year

g. 20 years 1 / 20 x 100 5% per year
  • The useful life of 10 years converted to a straight-line depreciation rate is 10%.
  • The useful life of 8 years converted to a straight-line depreciation rate is  12.50%.
  • The useful life of 25 years converted to a straight-line depreciation rate is 4%
  • The useful life of 40 years converted to a straight-line depreciation rate is 2.50%.
  • The useful life of 5 years converted to a straight-line depreciation rate is 20%.
  • The useful life of 4 years converted to a straight-line depreciation rate is  25%.
  • The useful life of 20 years converted to a straight-line depreciation rate is %5.

What is the straight line depreciation rate?

Straight line depreciation is when the value of an asset is reduced by constant percentages over the useful life of the asset.

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

The  straight-line depreciation rate when the:

  • useful life is 10 = (1/10) x 100 = 10%
  • useful life is 8 = (1/8) x 100 = 12.50%
  • useful life is 25 = (1/25) x 100 = 4%
  • useful life is 40 = (1 / 40) x 100 = 2.5%
  • useful life is 5 = (1 / 5) x 100 = 20%
  • useful life is 4 = (1 / 4) x 100 = 25%
  • useful life is 10 = (1 / 20) x 100 = 5%

To learn more about straight line depreciation, please check: https://brainly.com/question/6982430

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