You just purchased some equipment that will be depreciated using 20% reducing balance.The equipment cost €67,600.What will the book value of this equipment be at the end of three years
Should you decide to resell the equipment at that point in time?

Question

Quizplus · Accepted Answer

The book value after 3 years using 20% reducing balance depreciation can be calculated as follows: Year 1: €67,600 - (€67,600 * 20%) = €54,080. Year 2: €54,080 - (€54,080 * 20%) = €43,264. Year 3: €43,264 - (€43,264 * 20%) = €34,611.20.

You Just Purchased Some Equipment That Will Be Depreciated Using