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In the first year the value of the machine depreciates by

#20,000*10%=#2,000

At the end of the first year,the value of the machine will be

#20,000-#2000=#18,000

In the second year, the value of the machine depreciates by

#18,000*10%=#1,800

At the end of the second year, the value of the machine will be

#18,000-#1,800=#16,200

In the first year the value depreciates by

#20,000*10%=#2,000

At the end of the first year,the value of the machine will be

#20,000-#2000=#18,000

In the second year, the value of the machine depreciates by

#18,000*10%=#1,800

At the end of the second year, the value of the machine will be

#18,000-#1,800=#16,200

Machine is valued at #20000

Depreciates by 10% of the value (#20000) every year =20000/10=2000#

So the machine value depreciates by #2000 every year

So therefore two years depreciation would be #2000x2=#4000 minus the initial value (i.e ) #20000_#4000=#16000

The first year

10/100 x #20,000

#200,000/100

#2000

20,000-2000

#18,000

The second year

10/100 x #18,000

180,000/100

#1800

18,000-1800

#16,200

Correct