Question:

What is the rate of depreciation?

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The straight-line method of depreciation assumes a fixed amount of depreciation each year, calculated as \( \frac{{Cost} - {Scrap Value}}{{Useful Life}} \).
Updated On: Feb 11, 2025
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Solution and Explanation

Step 1: The formula for depreciation using the straight-line method is: \[ {Depreciation Rate} = \frac{{Cost} - {Scrap Value}}{{Useful Life}}. \] Step 2: Substitute the given values: \[ {Depreciation Rate} = \frac{45200 - 0}{3} = 15066.67 \, {per year}. \]
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