# Solution: Find the depreciation rate of welding machine by straight-line method.

A unit of welding machine cost P45,000 with an estimated life of 5 years. Its salvage value is P2,500. Find its depreciation rate by straight-line method.

#### Problem Statement: ME Board April 1992

A unit of welding machine cost P45,000 with an estimated life of 5 years. Its salvage value is P2,500. Find its depreciation rate by straight-line method.

• A. 18.89%
• B. 19.21%
• C. 19.58%
• D. 19.89%

The depreciation rate of welding machine by straight-line method is 18.89%.

Solution:

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