Gce Model Questions Vol1 2024 Financial Accounting Question 27
Practice objective / multiple choice question 27 from the 2024 Gce Model Questions Vol1 Financial Accounting examination.
A machine costs £120,000 and has a residual value of £20,000 with a useful life of 5 years. Under straight‑line depreciation the annual charge is therefore £20,000. Under a diminishing‑balance method a constant rate \(r\) (as a percentage of the book value) is applied each year. After 3 years the book value calculated using the diminishing‑balance method is the same as the book value calculated using the straight‑line method after 3 years. What is the annual diminishing‑balance depreciation rate \(r\) (expressed as a percentage, correct to one decimal place)?
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About This Question
This is Gce Model Questions Vol1 2024 Financial Accounting Question 27. It is one of the objective questions from the 2024 Gce Model Questions Vol1 Financial Accounting examination.
Difficulty level: Medium .
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