a laboratory equipment has an initial cost of 200,000, its salvage value after ten years is 20,000?

Question

as a percentage of the initial cost, what is the straight line depreciation rate of the equipment.?

Answer 1

Initial cost is 200,000 less salvage value 20,000 leaves you 180,000 to be depreciated over 10 years, straight line method, or 18,000 each year. So as a percentage of initial cost, depn rate is 18000/200000 = 9%

Answer 2

9%. Initial cost of $200,000 less the salvage value of $20,000 leaves $180,000 to be depreciated over a ten year period, or $18,000 depreciation charge per year. Annual depreciation expense of 18,000 divided by the initial cost of the equipment (200,000) is 9%. NO WAIT.....