EX 10-5 Straight-line depreciation rates

Convert each of the following estimates of useful life to a straight-line depreciation rate, stated as a percentage: (a) 10 years, (b) 8 years, (c) 25 years, (d) 40 years, (e) 5 years, (f) 4 years, (g) 20 years.


Answer:
(a) 10% (100% ÷ 10), (b) 12.5% (100% ÷ 8), (c)  4% (100% ÷ 25), 
(d) 2.5% (100% ÷ 40), (e) 20% (100% ÷  5), (f) 25% (100% ÷ 4), 

(g) 5% (100% ÷ 20)