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The price of the cellular phone is expected to decline at the rate of 11% annually...

The price of the cellular phone is expected to decline at the rate of 11% annually because of obsolescence. If the current selling price is ?24,000.00, how much will it cost after 5 years? Use the declining balance method

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Answer #1
Year Cost
(A)		 Accumulated Depreciation
(B)		 Opening
NBV
C=(A-B)		 Rate
(D)		 Depreciation
this year
E=(CxD)		 Accumulated
Depreciation
F=B+E		 Closing
NBV
A-F
1 24,000 0 24000 11% 2640 2640 21360
2 24000 2640 21360 11% 2349.6 4989.6 19010.4
3 24000 4989.6 19010.4 11% 2091.144 7080.744 16919.256
4 24000 7080.744 16919.256 11% 1861.11816 8941.86216 15058.13784
5 24000 8941.86216 15058.13784 11% 1656.395 10598.257 13401.7428
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