00:01
So here on this question, the straight line rate, the straight line rate rate is 1 by 8, that is 0 .125.
00:14
Since the useful life in 80 years, the double declining balance rate, the double declining balance rate, the double declining balance rate is 0 .125 into 2 .5 into 2.
00:33
That is 0 .25 or 25 % then the total depreciation cost total depreciation cost is 550 ,000 minus 50 ,000 for machine x plus 200 ,000 minus 20 ,000 for machine y, plus 200 ,000 minus 20 ,000 for machine y, plus, 40 ,000 minus 5 ,000 for machine z and that is 750 ,000 so the total depreciation per year total depreciation per year is the depreciable cost divided by the lifespan in years for each machine so it's 500 ,000 by 20 for machine x plus 180 ,000 by 15 for machine y plus 35 ,000 by 5 motor machine z and this comes out to be 44 ,000...