- A farmer buys a combine harvester at a cost of R1,3 million. The depreciation on the harvester is calculated at 12% p.a on a reducing balance. Calculate the book value of the harvester at the end of eight years.
- On the 2nd of January 2015 a company bought a new printer for R150 000.The value of the printer decreases 20% annually on the reducing-balance method.When the book value of the printer is R49 152, the company will replace the printer.
- The graph of f shows the book value of a vehicle x years after the time Joe bought it. The graph of g shows the cost price of a similar new vehicle x years later.