Asset cost £1000, scrap value £100, useful life 10 year. What would be carrying value of asset after 3 year under reducing balance method?

Mr. Wasim Khan, Thanks for posting this question, this is one the challenging question to be answered. Please keep posting such question.

The carrying value of the Asset after3 years will be £. or £.

Calculations :-

The Depreciation rate for the Assets come to around0.

The formula for calculating the depreciation rate for 'Diminishing Balance Method' is 

                    1 - ((salvage / cost) ^ (1 / life))

                   =1-((/)^ (1/)) =0. (rounded to3 decimal places)

1st Year Depreciation = £*0.= £, Asset Value = £

2nd Year Depreciation = £*0.= £., Asset Value = £.

3rd Year Depreciation = £.*0.= £., Asset Value = £.

Rate of depreciation is not mentioned.