Convert each of the following estimates of useful life to a straight-line depreciation rate, stated as a percentage: (a) 10 years, (b) 8 years, (c) 25 years, (d) 40 years, (e) 5 years, (f) 4 years, (g) 20 years. If required, round your answers to one decimal place. Years Percentage a. 10 years fill in the blank 1 % b. 8 years fill in the blank 2 % c. 25 years fill in the blank 3 % d. 40 years

Conversion of Estimates of Useful Life to Straight-line Depreciation Rate:

   Useful Life        Straight-line

                         Depreciation Rate

(a) 10 years              10%

(b) 8 years             12.5%

(c) 25 years              4%

(d) 40 years           2.5%

(e) 5 years             20%

(f) 4 years              25%

(g) 20 years            5%

Explanation:

a) Data and Calculations:

                               Straight-line

    Useful Life     Depreciation Rate   Conversion

(a) 10 years            10%                         100/10

(b) 8 years             12.5%                      100/8

(c) 25 years           4%                           100/25

(d) 40 years           2.5%                       100/40

(e) 5 years             20%                        100/5

(f) 4 years              25%                        100/4

(g) 20 years          5%                           100/20

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