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Homework answers / question archive / DBM: A property that is book-depreciated over a 10-year period by the Declining Balance Method has $19,856
DBM: A property that is book-depreciated over a 10-year period by the Declining Balance Method has $19,856.99 book value on the 4th year. Determine the first cost of the property (round-off k to 4 decimal places).
Let the first cost of the propeerty be x
Year YearEnd Book value
1 =x-x/10*2=0.8x
2 =0.8x-0.8x*0.2=0.64x
3 =0.64x-0.64x*0.2=0.512x
4 =0.512x-0.512x*0.2=0.4096x
0.4096x=19856.99
=>x=19856.99/0.4096
=>x=48478.979492
