Answer:
Cost of Machine =$ 500,000
Rate of Depreciation =10 %
Depreciation Formula is given by and value of Machine after a year can be calculated by
[tex]=\text{Principal}\times [1-\frac{R}{100}]^n\\\\=500000 \times [1-\frac{10}{100}]^1\\\\=500000 \times \frac{90}{100}\\\\=450,000[/tex]
Value of machine after a year =$450,000
Depreciation value =$500,000-$450,000
= $ 50,000
