
 

What is the second year's depreciation of a business which cost $53,300, if it depreciates at 12% p.a.?

To calculate the second year's depreciation of a business that costs $53,300 and depreciates at 12% per annum, we will use the following steps:

1. **Calculate First Year's Depreciation:**
   \[
   \text{First Year's Depreciation} = \text{Cost} \times \text{Depreciation Rate}
   \]
   \[
   = 53,300 \times 0.12 = 6,396
   \]

2. **Calculate Remaining Value After the First Year:**
   \[
   \text{Remaining Value} = \text{Cost} - \text{First Year's Depreciation}
   \]
   \[
   = 53,300 - 6,396 = 46,904
   \]

3. **Calculate Second Year's Depreciation:**
   \[
   \text{Second Year's Depreciation} = \text{Remaining Value} \times \text{Depreciation Rate}
   \]
   \[
   = 46,904 \times 0.12 = 5,628.48
   \]

Thus, the second year's depreciation is **$5,628.48**.

Would you like more details or have any questions?

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Here are 8 related questions:
1. What is the third year's depreciation using the same method?
2. How would depreciation change if the rate were reduced to 10%?
3. How does straight-line depreciation differ from this method?
4. How is total depreciation calculated over a specific period?
5. What would the depreciation be after 5 years using this method?
6. Can depreciation rates vary for different types of assets?
7. How does inflation affect depreciation calculations?
8. How is accumulated depreciation recorded on financial statements?

**Tip:** Keep track of the remaining value each year for more accurate depreciation calculations.

Learn how to calculate the second year's depreciation of a business that costs $53,300 with a 12% annual depreciation rate. Includes step-by-step calculation using the depreciation formula. Suitable for high school students and anyone interested in financial calculations.

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