Convert each of the following estimates of useful life to a straight-line depreciation rate, stated as a percentage, assuming that the residual value of the fixed asset is to be ignored:

(a) 4 years,

(b) 8 years,

(c) 10 years,

(d) 16 years,

(e) 25 years,

(f) 40 years,

(g) 50 years.

If required, round your answers to two decimal places.

Years Percentage

a. 4 years? %

b. 8 years? %

c. 10 years? %

d. 16 years? %

e. 25 years? %

f. 40 years? %

g. 50 years? %

The calculations are shown below.

Explanation:

In order to compute the percentage rate we have to assume the initial cost be $100

So the percentage rate for the following years could be as follows

(a) 4 years = $100 : 4 = 25%

(b) 8 years = $100 : 8 = 12.5%

(c) 10 years = $100 : 10 = 10%

(d) 16 years = $100 : 16 = 6.25%

(e) 25 years = $100 : 25 = 4%

(f) 40 years = $100 : 40 = 2.5%

(g) 50 years = $100 : 50 = 2%

By dividing the initial cost by the number of years we can get the percentage rate and the same method is applied