Answer:
Accumulated depreciation at the end of year 5 is $12 million
Explanation:
The relevant number of years with which to depreciate the asset is from 1 to 10, however these numbers are taking in descending in order to have more depreciation in early years and less in later years.
Years relevant weighting number
1 10
2 9
3 8
4 7
5 6
6 5
7 4
8 3
9 2
10 1
Total weighting 55
The accumulated depreciation at the end of year 5 would depreciation from year 1 to year 5 calculated as shown below:
(10+9+8+7+6)/55*$16.5 million=$12 million
In other words, at the end of year $12 million would have been charged as expense to income statement.
