Answer:
original cost times 8%
$25,000 x .08 = $2,000
then take $25,000 - $2,000 = $23,000 (first year depreciation)
continue with 2nd year
$23,000 x .08 = $1840
23000-1840 = 21160 (2nd year depreciation)
21160 x .08 = 1693
21160 - 1693 = 19467 (3rd year depreciation)
19467 x .08 = 1557
19467 - 1557 = 17910 (4th year depreciation)
17910 x .08 = 1433
17910 - 1433 = 16477 (5th year depreciation)
16477 x .08 = 1318
16477 - 1388 = 15159 (6th year depreciation)
15159 x .08 = 1213
15159 - 1213 = 13946 (7th year depreciation)
Step-by-step explanation:
Asset Value x Annual Percentage = Depreciation Amount
Asset Value - Depreciation Value = Balance
