# 1 Press Ctrl-A ©G Dear 2009 – Not to be sold/Free to use Straight Line Depreciation Stage 6 - Year 12 General Mathematics HSC.

## Presentation on theme: "1 Press Ctrl-A ©G Dear 2009 – Not to be sold/Free to use Straight Line Depreciation Stage 6 - Year 12 General Mathematics HSC."— Presentation transcript:

1 Press Ctrl-A ©G Dear 2009 – Not to be sold/Free to use Straight Line Depreciation Stage 6 - Year 12 General Mathematics HSC

2 Straight Line Method (1/4) \$ Value of asset declines by a constant amount each year. Salvage Value: S = V 0 - Dn S = Salvage ValueV 0 = Purchase price D = Annual Depreciationn = Number of Periods Press You Tube Video

3 Straight Line Method (2/4) A boat is bought for \$30 000 and depreciates at \$1,500/annum. Calculate the salvage value after 7 years. S = V 0 - Dn S =S =30 000- 1 500x 7 = \$ 19 500 Purchase PriceAnnual DepreciationNumber of periods

4 Straight Line Method (3/4) A boat is bought for \$30 000 and depreciates at \$1,500/annum. Calculate the salvage value after 7 years. S = V 0 - Dn S =S =30 000- 1 500x 7 = \$ 19 500 Purchase PriceAnnual DepreciationNumber of periods

5 Straight Line Method (4/4) A plane is bought for \$300 000 and depreciates at \$25 000/annum. If it is replaced when the salvage value is \$100,000, how long till it is replaced? S = V 0 - Dn 100 000 = Salvage Value 300 000 Purchase Price - 25 000 Annual Depreciation n Number of periods +25000n 100 000+25000n = 300 000 -100000 25000n = 200 000 ÷25000 n = 8years

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