Calculate the annual depreciation of a farm machinery with a total depreciation of D63,000 and a useful life of 5 years

The annual depreciation of the farm machinery can be calculated using the straight-line method of depreciation. This method involves dividing the total depreciation by the useful life of the asset to determine the annual depreciation expense. In this case, the total depreciation of the farm machinery is D63,000 and the useful life is 5 years. Therefore, the annual depreciation can be calculated as: Annual Depreciation = Total Depreciation / Useful Life Annual Depreciation = D63,000 / 5 Annual Depreciation = D12,600.00 Therefore, the annual depreciation of the farm machinery is D12,600.00. Option (c) is the correct answer. It is important to note that depreciation is a method used to allocate the cost of an asset over its useful life. It represents the decrease in the value of the asset due to wear and tear, age, and obsolescence. By calculating the annual depreciation expense, farmers can plan for the replacement of the asset at the end of its useful life and ensure that the costs are properly allocated over time.