A machine was purchased with money borrowed from the bank at a cost of k50000.00 which is expected to last for 6 years and depreciated at 12.5% per 6,the depreciated value and the accumulated interest for year two (2)year (6) .The first calculation has been done for you. Year 1book value is k43,750 and the depreciated value is k6250 and the accumulated deprecation k6250
To calculate the depreciated value and accumulated interest for year two (2), we need to know the depreciation rate and the initial book value of the machine.
Given:
Initial book value (Year 1) = K43,750
Depreciation rate per year = 12.5%
To calculate the depreciated value for year two (2), we can use the formula:
Depreciated Value (Year 2) = Initial Book Value (Year 1) - Depreciation (Year 1)
Using the given information, we can calculate the depreciated value for year two (2):
Depreciated Value (Year 2) = K43,750 - K6,250
Depreciated Value (Year 2) = K37,500
So, the depreciated value for year two (2) is K37,500.
Next, let's calculate the accumulated depreciation for year two (2). Accumulated depreciation is the sum of all the depreciation amounts up to the given year.
To calculate the accumulated depreciation for year two (2), we can use the formula:
Accumulated Depreciation (Year 2) = Depreciation (Year 1) + Depreciation (Year 2)
Since we are given the depreciation for the first year, we need to find the depreciation for the second year using the depreciation rate.
Depreciation (Year 2) = Initial Book Value (Year 2) * Depreciation Rate
Depreciation (Year 2) = K37,500 * 12.5%
Depreciation (Year 2) = K4,687.50
Now, we can calculate the accumulated depreciation for year two (2):
Accumulated Depreciation (Year 2) = K6,250 (Depreciation Year 1) + K4,687.50 (Depreciation Year 2)
Accumulated Depreciation (Year 2) = K10,937.50
So, the accumulated depreciation for year two (2) is K10,937.50.
Therefore, the depreciated value for year two (2) is K37,500 and the accumulated depreciation for year two (2) is K10,937.50.