Based on the rate of depreciation each year, the amount of depreciation of the machinery in the sixth year will be $300.
What is the annual depreciation amount?
The depreciation in the second year is:
= 6,000 - 5,700
= $300
The depreciation in the third year is:
= 5,700 - 5,400
= $300
If this amount remains constant till the sixth year therefore, then it means that the sixth year depreciation amount is also $300.
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