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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