Answer:
Step-by-step explanation:
First we calculate the annual depreciation of the car
Annual Depreciation = (Cost of car – Net Scrap Value of car)/Useful Life
Details
Cost of Car= $13,500
Net scrap Value of car= $3,200
useful Life=5
Thus: Annual Depreciation = ($13,500-$3,200)/5
= $2,060/year (Annual Depreciation)
Rate = Annual Depreciation/Cost of car X 100%
= $2,060/$13,500 X 100%
Depreciation rate = 15%
