A two-year old asset has a depreciable life of 10 years.Its initial purchase cost was R450 000 and it is depreciated by 10 per cent annually.What is the remaining depreciable value of the asset?
A)R 0.00
B)R90 000
C)R200 000
D)R360 000

Question

Quizplus · Accepted Answer

The asset depreciates by 10% annually, so after two years, it has depreciated by 20% of its initial cost. 20% of R450,000 is R90,000. The remaining depreciable value is R450,000 - R90,000 = R360,000.

A Two-Year Old Asset Has a Depreciable Life of 10