2.1 A machine costing R120 000 has a useful life of five years (20% depreciation). Calculate...

2.1 A machine costing R120 000 has a useful life of five years (20% depreciation).

Calculate the asset’s depreciation for all five years using both the straight-line method and diminishing balance method. Also, discuss the difference between the two methods and provide an appropriate example to explain how one would choose the appropriate method to use.

Expert Solution

Difference between the two methods and example are as under :

jeff jeffy answered 1 year ago

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