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A van purchased for 44000 is depreciated over 5 years using straight line depreciation what is the depreciation equation?
Wiki User
∙ 14y ago
the depreciation equation =asset price / 5
=44000/5
=8800
Wiki User
∙ 14y ago
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What is srtaight line method?
Straight line method of depreciation is that under which any asset is depreciated in equal amount for every year till salvage value. Formula for straight line method: Depreciation = (Cost price - Salvage Value)/Number of years
Straight line method of depreciation?
Straight line depreciation method is that method in which fixed amount of depreciation is charged to all fiscal years in which that asset is used.
What is the formula for a straight line depreciation method?
The formula for a straight line depreciation method is the Cost minus the Salvage Value over the Life in Number of Periods which will equal Depreciation.
Why accumulated depreciation is credited explain with example?
Accumulated depreciation is contra for related assets shows in balance sheet to show the reduction in actual cost of asset Example: if 1 asset purchased for 100 for 10 years then per year depreciation is 10 with straight line depreciation so after ten years actual cost will be nill while accumulated depreciation will be 100.
Accelerated depreciation method?
Accelerated depreciation is method in which double rate for depreciation is used as compare to straight line method.
Which type of depreciation method accelerates depreciation in the early years of an asset's life?
Diminishing value method where you depreciate the asset by a percentage rather than the straight line method where the same amount gets depreciated each year.
What is srtaight line method?
Straight line method of depreciation is that under which any asset is depreciated in equal amount for every year till salvage value. Formula for straight line method: Depreciation = (Cost price - Salvage Value)/Number of years
What Identify three types of depreciation policy that could be used?
Three types of depreciation policies that could be used are straight-line, reducing balance or declining balance, and sum-of-the-years'-digits. The straight-line method spreads the cost of an asset equally over its useful life. The reducing balance method applies a higher depreciation rate to the asset's initial cost, resulting in larger deductions in the earlier years. The sum-of-the-years'-digits method accelerates depreciation by assigning higher depreciation rates to the earlier years and lower rates to the later years.
Depreciation straight line method?
Straight line depreciation method is that method in which fixed amount of depreciation is charged to all fiscal years in which that asset is used.
Formula for calculating straight line depreciation?
Formula for straight line depreciation is as follows: Depreciation = (Cost of asset - salvage value) / useful life of asset
Straight line method of depreciation?
Straight line depreciation method is that method in which fixed amount of depreciation is charged to all fiscal years in which that asset is used.
Why is office furniture depreciated using straight line method?
It is always recommeded to contact your accountant or financial adviser concerning the depreciation of office furniture. IRS guidelines can vary over time and to get the maximimum benefit it is best to contact a professional.
What is the formula for a straight line depreciation method?
The formula for a straight line depreciation method is the Cost minus the Salvage Value over the Life in Number of Periods which will equal Depreciation.
Why accumulated depreciation is credited explain with example?
Accumulated depreciation is contra for related assets shows in balance sheet to show the reduction in actual cost of asset Example: if 1 asset purchased for 100 for 10 years then per year depreciation is 10 with straight line depreciation so after ten years actual cost will be nill while accumulated depreciation will be 100.
What are the basic method of depreciation?
http://en.wikipedia.org/wiki/Depreciation#Straight-line_depreciation
Accelerated depreciation method?
Accelerated depreciation is method in which double rate for depreciation is used as compare to straight line method.
Straight line method?
The straight-line method of depreciation depreciates a capital asset evenly over its useful life until it reaches its salvage value (i.e., the value at which the asset can be sold at the end of its useful life). As an equation: Annual S/L Depreciation = (Cost - Salvage Value) / Useful Life
