Concept:Annual depreciation is the value lost by an asset each year over its useful life.
Explanation:The total depreciation of the farm machinery is D63,000.
Its useful life is given as 5 years.
Under the straight-line method, this total depreciation is spread equally across all years.
Annual depreciation is calculated by dividing the total depreciation by the useful life.
So, annual depreciation =
563,000.
This gives
12,600.
Therefore, the farm machinery depreciates by D12,600.00 every year.
Answer:C. D12,600.00