the depreciation rate, rm, for a 150% declining rate using the declining - balance method for a recovery…

the depreciation rate, rm, for a 150% declining rate using the declining - balance method for a recovery period of 7 years, is: 0.214 0.300 0.286

the depreciation rate, rm, for a 150% declining rate using the declining - balance method for a recovery period of 7 years, is: 0.214 0.300 0.286

Answer

Explanation:

Step1: Recall the formula for declining - balance depreciation rate

The formula for the declining - balance depreciation rate $R_m$ in the $DB(R)$ method is $R_m=\frac{R}{n}$, where $R$ is the multiple of the straight - line rate and $n$ is the recovery period. The straight - line depreciation rate is $\frac{1}{n}$. Here, $R = 1.5$ (since it is a 150% declining rate) and $n = 7$.

Step2: Calculate the depreciation rate

Substitute the values into the formula: $R_m=\frac{1.5}{7}\approx0.214$.

Answer:

0.214