DEPRECIATION

(ASSIGNMENT)
Problem 1
A construction machine was purchased in $ 12000 in 2013. It was decided to
replace it with a newer one in 2023. Its resale price in 2023 was estimated to be
$2000 only. The machine was purchased by taking a bank loan @ 3% interest
annually. Calculate by the four depreciation methods:
(a) Annual depreciation rate.
(b) Total depreciation at the end of 6th year.
(c) Book value at the end of 6th year.
Also compare the four depreciation curves plotted between age versus book value
in percent of first cost.
Problem 2
A construction equipment is purchased for Rs: 1,00,000/- at an interest rate of 4 %
and is
estimated to have a life of 12 year s and a scrap value of Rs: 18,000/- at
the end of that time. What will be the total depreciation cost and book value at the
end of 7th year ? Solve the problem by four Depreciation methods and draw typical
depreciation curves for full useful life of the machine.
Problem 3

Calculate the Total Depreciation and Book value of a concrete mixer at the
end of 10th year by SYD and Sinking fund formulas. The mixer was
initially purchased for Rs: 3,50,000/- at an interest rate of 3.0 % and is
estimated to have a useful life of 15 years and a scrap value of Rs: 25,000/at the end of useful life.
Problem 4
Calculate the Total Depreciation and Book value of a crane at the end of 16th year
by Constant Percentage Method and Sinking fund formulas. The mixer was initially
purchased for Rs: 13,50,000/- at an interest rate of 3.0 % and is estimated to have a
useful life of 20 years and a scrap value of Rs: 25,000/- at the end of useful life.
Problem 5
A construction equipment is purchased for Rs: 1,00,000/- at an interest rate of 4 %
and is estimated to have a life of 7 years and a scrap value of Rs: 18,000/- at the
end of that time. What will be the yearly depreciation of this equipment in its useful

life. Solve the problem by four Depreciation methods and draw depreciation curves
in the same figure.