I would like to know how answer ths question including how to use the formula. :)
A company intends to purchase a new piece of machinery
For $ 250, 000 that will depreciate by 6% half year after purchase. What will the machine be worth 5 years after purchase?

This is not the answer I just want to know these details so I can answer this question for you and will explain it to you as well

I want to know that you said 6% half year after purchase it means that the machine is being purchased in the mid of the year and yearly depreciation is 12 %? If I am right then tell me I will solve it for you completely... One more thing which I would like to know is that you said 5 years after purchase it means that half year and then 5 years total 5.5 years am I right?

Oh.. sorry. I meant to say 6% per half year

Attachment 26357
This method will be the diminishing balance method .



I have calculate for 2 years so you can learn how to do it now you can calculate it for the rest of the three years . So then you will learn and can do it well in your exams.. :)

If you need anyfurther help feel free to ask