Ques A construction equipment is purchased for USD 12000 at an interest rate of 3 % and is estimated to have a life of 10 years and a scrap value of USD 2000 at the end of that time. What will be: 1- The annual Depreciation cost. 2 - The total depreciation cost at the end of 6th year 3 - The book value at the end of 6th year. Solve the problem by four Depreciation methods and plot & compare depreciation curves for these methods.

Structural Analysis
6th Edition
ISBN:9781337630931
Author:KASSIMALI, Aslam.
Publisher:KASSIMALI, Aslam.
Chapter2: Loads On Structures
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Solve by declining balance method

Question No. 1
A construction equipment is purchased for USD 12000 at an
interest rate of 3 % and is estimated to have a life of 10 years and
a scrap value of USD 2000 at the end of that time. What will be:
1- The annual Depreciation cost.
2 - The total depreciation cost at the end of 6th year
3 - The book value at the end of 6th year.
Solve the problem by four Depreciation methods and plot &
compare depreciation curves for these methods.
Transcribed Image Text:Question No. 1 A construction equipment is purchased for USD 12000 at an interest rate of 3 % and is estimated to have a life of 10 years and a scrap value of USD 2000 at the end of that time. What will be: 1- The annual Depreciation cost. 2 - The total depreciation cost at the end of 6th year 3 - The book value at the end of 6th year. Solve the problem by four Depreciation methods and plot & compare depreciation curves for these methods.
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