Name: ___________________________________ Date: ________________

A. Get the depreciation cost using the Straight-line Method. Show your solution.
DC=Purchase Cost - Salvage Value /Serviceable years
1. Mang Kanor bought a hammer with a purchase cost of 650. Given the salvage value of 100
and serviceable year of 20. What is the depreciation cost of the tool?

2. The farmer bought a machine grass cutter worth 2,550 and a serviceable year of 20. The
salvage is 1,000 less than the original purchase cost. What is the depreciation cost of the tool?

3. Don Quixote bought a new bolo with a price of 350 and a serviceable year of 20. The salvage
value is half the original price of the tool. What is the depreciation cost of the tool?

B. Get the annual value of of the mattock using the Diminishing Balance Method. Show
your solution.
DC=Purchase Cost - Serviceable years x Rate of Depreciation

Value per Year = Value of the previous year - DC

1. Annie as the owner of the farm wanted to know the possible value of mattock every year,
because she was proposing a new project. She bought the mattock with a total cost of 450 and
a serviceable year of 20 with annual rate depreciation of 10%. What are the values or costs of
mattock after two and three years?

2. Mang Jose bought the shovel worth of 250 and a serviceable year of 20 with annual rate
depreciation of 20%. What are the values or costs of the shovel after two and three years?