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Calculate the percentage of the cost

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A factory owner buys a tractor and a lorry. A tractor costs £1,060,000 and is estimated to have a life of 4 years and a scrap value of £20,000. Using the equal installment method

1. Calculate the percentage of the cost to be written off each year.

2. Prepare a depreciation schedule that shows:

(i) the annual depreciation for each year

(ii) the accumulated depreciation for each year

(iii) the book value at the end of each year.

Reference no: EM131069603

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