A farmer bought a machine for $ 3200 it is to be depreciated at a rate of 25% using the reducing balance method .what would be value after 2 years?

To find the value of the machine after 2 years using the reducing balance method, we need to follow these steps:

1. Determine the depreciation rate: In this case, the depreciation rate is 25%. This means that the machine's value decreases by 25% each year.

2. Calculate the depreciation amount for the first year: Multiply the initial value of the machine ($3200) by the depreciation rate (25%) to find the depreciation amount for the first year.
Depreciation amount = $3200 x 25% = $800

3. Subtract the depreciation amount from the initial value to find the value of the machine at the end of the first year.
Value at the end of the first year = $3200 - $800 = $2400

4. Repeat steps 2 and 3 to calculate the depreciation amount and the value of the machine at the end of the second year:

Depreciation amount for the second year = $2400 x 25% = $600
Value at the end of the second year = $2400 - $600 = $1800

Therefore, the value of the machine after 2 years using the reducing balance method would be $1800.