> #accounting > Traders purchased a motor vehicle at a cost of 5200000the firm provides depreciation at25%per annumon the straight line method after How many years will the motor vehicle have a nil value?
Anonymous
Mar 16

Traders purchased a motor vehicle at a cost of 5200000the firm provides depreciation at25%per annumon the straight line method after How many years will the motor vehicle have a nil value?

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Mar 16
To find out how many years it will take for the motor vehicle to have a nil value, we need to calculate the depreciation amount per year and then divide the initial cost by the depreciation amount per year.

Depreciation amount per year = 25% of 5200000 = 0.25 * 5200000 = 1300000

Number of years to reach nil value = 5200000 / 1300000 = 4 years

Therefore, it will take 4 years for the motor vehicle to have a nil value.
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