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The problem from the image asks to calculate the depreciation of a computer system purchased for $45,000 on 1 July, using a straight-line depreciation method with an annual depreciation rate of 12.5%. The depreciation calculation is needed as of 31 December.

### Straight-Line Depreciation Formula:
\[
\text{Depreciation per year} = \frac{\text{Cost}}{\text{Useful life in years}} \quad \text{or} \quad \text{Depreciation per year} = \text{Cost} \times \text{Depreciation rate}
\]

#### Given Information:
- **Cost of the system** = $45,000
- **Depreciation rate** = 12.5% per annum
- **No residual value** (i.e., full depreciation is applied over its useful life)
- **Purchase date** = 1 July
- **Depreciation period** = from 1 July to 31 December (6 months or half a year)

### Step 1: Calculate annual depreciation
\[
\text{Annual depreciation} = 45,000 \times \frac{12.5}{100} = 45,000 \times 0.125 = 5,625
\]

### Step 2: Depreciation for the period (July to December)
Since the system is purchased in July and the calculation is required until December, we need to account for half a year (6 months):
\[
\text{Depreciation for 6 months} = \frac{5,625}{2} = 2,812.50
\]

### Final Depreciation Value:
The depreciation from 1 July to 31 December is **$2,812.50**.

Would you like further details or clarification?

Here are some related questions to deepen your understanding:
1. How would the depreciation change if the system had a residual value?
2. What if the depreciation method was reducing balance instead of straight-line?
3. How does the straight-line depreciation method compare to units of production depreciation?
4. What impact does a higher depreciation rate have on financial statements?
5. How is accumulated depreciation recorded in financial accounting?

**Tip:** When calculating depreciation, always adjust for the time period being calculated, especially if the purchase date is not at the beginning of the financial year.

A computer system was purchased on 1 July for $45,000. The depreciation rate is 12.5% p.a. using the straight-line method. There is no residual value. Calculate depreciation as at 31 December.

Learn how to calculate the depreciation of a computer system purchased for $45,000 on 1 July using the straight-line method at a 12.5% annual rate. The problem involves adjusting for a 6-month period from July to December. Suitable for high school students studying accounting or business finance.

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