Depreciation Worksheet
The formula to calculate
• Depreciated Value (𝐴)
• Depreciation (𝐷)
The difference between depreciated value and depreciation:
What is the meaning of residual (scrap) value?
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To express depreciated value as a percentage of the original value:
1. Divide ____________________ by ____________________
2. Multiply the ____________________ by 100. (Move the decimal point to right twice)
𝑅𝑒𝑑𝑢𝑐𝑒𝑑 𝑎𝑚𝑜𝑢𝑛𝑡 (𝐷𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛)
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑟𝑒𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑜𝑣𝑒𝑟 𝑎 𝑔𝑖𝑣𝑒𝑛 𝑝𝑒𝑟𝑖𝑜𝑑 𝑜𝑓 𝑡𝑖𝑚𝑒 =
𝑁𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑡𝑖𝑚𝑒 𝑝𝑒𝑟𝑖𝑜𝑑𝑠
To calculate percentage decrease:
1. Calculate the decreased amount, ____________________
2. Divide ____________________ by ____________________
3. Multiply the ____________________ by 100. (Move the decimal point to right twice)
Complete the following question in your workbook. Questions 8 and 9 are challenge
questions.
1. A machine costing $40 000 is to be depreciated at 20% per annum. Calculate the
value of the machine after 3 years.
2. A fixed asset costs $15 000. It has a residual (scrap) value $2 000, what is the amount
of depreciation?
3. A machine is purchased for $32 000. It is to be depreciated at 10% per annum.
What is the depreciation at the end of the third year?
4. A business purchases a car for $20,000. The car depreciates at a rate of 15% per
annum. Express the depreciated value after 5 years, as a percentage of the
purchase price. (Correct to 2 decimal places.)
5. The landlord of a large block of home units purchased washing machines for its
units six years ago for $600 000, and is assuming a depreciation rate of 30% p.a.
a) Find the estimated value after six years.
b) What is the percentage decrease in value over the six-year period?
c) What is the average reduction in value, in dollars p.a., on the washing machines
over the six-year period due to depreciation?
6. A school bought a bus for $90 000, depreciated it at 30% p.a., and sold it again five
years later for $20 000. Was the price that they obtained better or worse than the
depreciated value, and by how much?
7. Taxis depreciate at 50% p.a., and other cars depreciate at 22.5% p.a.
a) What is the total percentage reduction in value on each type of vehicle after six
years?
b) What is the difference in value after six years of a fleet of taxis and a fleet of
other cars, if both fleets originally cost $10 000 000?
8. I take 500 mL of a liquid and dilute it with 100 mL of water. Then I take 500 mL of the
mixture and again dilute it with 100 mL of water. I repeat this process 20 times in all.
a) What percentage of the original liquid remains in the mixture at the end?
b) How much mixture should I take if I want it to contain 20 mL of the original liquid?
9. The number of trees on Green Plateau fell by 5% every year for 10 years. Then the
numbers rose by 5% every year for 20 years. What was the total percentage gain or
loss of trees over the 30-year period?