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If the 150 percent declining balance method is used and an asset has a useful life of 20 years what is the depreciation rate?
Wiki User
∙ 12y ago
Depreciation rate = 1/Useful life * 100 * 1.5
1/20 = 0.05
0.05*100*1.5 = 7.5
Depreciation rate is 7.5%
Wiki User
∙ 12y ago
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Which depreciation method does not use residual value in calculating the first years depreciation expense?
Declining-Balance
How is the straight line depreciation method different from declining balance method?
The straight-line depreciation method allocates the cost of an asset evenly over its useful life, while the declining balance method applies a fixed depreciation rate to the asset's declining book value each year. Straight-line method results in equal annual depreciation expenses, while declining balance method typically yields higher depreciation expenses in the early years of an asset's life.
What is the depreciation method with successive reductions in depreciation over life of asset?
declining - balance
What are the three formulas for depreciation?
Thre formulas for depreciation are a fixed percentage, a straight line, and a declining balance method.
Which method almost always produces the most depreciation in the first year?
Double declining balance.
How many methods of calculating depreciation?
Following are different methods of depreciation: 1 - Straight line method 2 - Diminishing balance method 3 - Double declining method 4 - Sum of years method 5 - MACRS
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 methods by law?
as per accounting standards issued by icai depreciation can be charged by following two methods 1)straight line method 2)written down value method but as per income tax act depreciation is allowed by way of wdv method.
A company purchased an asset for 170000 with a salvage value of 8500 have a useful life of 4 years Find the depreciation epense for the first year using the 150 percent declining balance method?
Annual depreciation is as follows: Annual depreciation = (actual cost - salvage value ) / useful life of asset annual depreciation = 170000 - 8500 / 4 = 40375 Annual depreciation with 150 percentage decline method = 40375 * 1.5 = 60563
Which depreciation method generates best applies to those assets that genrate greater revenue earlier in their useful lives?
Double- Declining- balance Method -MBA in Accounting Professor
If a truck costing 32000 has a useful life of 5 years and a value of 2000 the declining-balance method annual depreciation would be?
32000-2000/5=31600
What is the formula of book value for double declining balance?
The Book Value formula for DDB isBV = FCIL - S dkDDBwhereFCIL is the Capital Cost Investment (excluding the cost of land)S is the Salvage valuedkDDB is the depreciation allowance using the Double Declining Balance method.
