A motorized sprayer was purchased at N2,000.0 and sold at N1,000.00 after 5 years. calculate the annual depreciation of the sprayer.

Answer Details

The annual depreciation of the sprayer can be calculated using the straight-line method of depreciation. This method assumes that the asset depreciates at a constant rate over its useful life. To calculate the annual depreciation, we need to first determine the depreciable value of the sprayer. Depreciable value is the difference between the cost of the asset and its salvage value (the amount for which it is sold at the end of its useful life). Depreciable value = Cost - Salvage value Depreciable value = N2,000.00 - N1,000.00 Depreciable value = N1,000.00 Since the sprayer was used for 5 years, its useful life is 5 years. Annual depreciation = Depreciable value / Useful life Annual depreciation = N1,000.00 / 5 Annual depreciation = N200.00 Therefore, the annual depreciation of the sprayer is N200.00.