The value of motorcycle after the end of one year will be $6,380.
The depreciation is the reduction in the value of the fixed assets due to the passage of time, wear and tear. It is charged at the end of each year upon the book value of the asset.
There are most commonly three methods to determine depreciation:
Computation:
Given,
Cost =$7,250
Rate of depreciation =12%
First the depreciation is computed:
[tex]\begin{aligned}\text{Depreciation}&=\text{Cost}\times\text{Rate of Depreciation}\\&=\$7,250\times12\%\\&=\$870\end{aligned}[/tex]
Now, the worth of motorcycle is computed at the end of one year:
[tex]\begin{aligned}\text{Value of Motorcycle after 1 year}&=\text{Cost\;-\;Depreciation}\\&=\$7,250-\$870\\&=\$6,380\end{aligned}[/tex]
Thus, the worth after one year is $6,380.
To know more about depreciation, refer to the link:
https://brainly.com/question/1287946
