straight-line
In determining the period of depreciation to be charged, one must consider the cost of the asset and its estimated salvage value. The usual life of the asset must also be considered together with its obsolescence.
Original cost, estimated salvage value, and estimated useful life.
that the amount of periodic depreciation be changed in the current year and in future years.
$16,250
The formula for reducing balance method of depreciation is r = 1 - (S/C)1/n. The r stands for rate of depreciation, n stands for estimated useful life of asset, S stands for residual value after the expiry of useful life, and C stands for the original cost of asset.
In determining the period of depreciation to be charged, one must consider the cost of the asset and its estimated salvage value. The usual life of the asset must also be considered together with its obsolescence.
Depreciation for 1st year = 6000 Depreciation for 2nd year = 2000 Depreciation for 3rd year = 400
James' mom purchased a new truck for $39,310 four years ago. James, who is a mechanic, estimated that the truck's present value is $25,250. What is her depreciation? Formula: Depreciation = Purchase Price - Today's Value/Number of Years Owned
Novelty Chemicals bought a Motor Vehicle for $110,000 on January 5, 2016. The estimated useful life of the vehicle is ten years. The disposal value is estimated at $10,000. Annual depreciation is on the straight line method. Required for years 2016, 2017 and 2018: a) The Motor Vehicle A/c. b) The Provision for depreciation A/c. c) The Profit and Loss accounts extracts for annual depreciation. d) The Balance Sheet extracts for motor vehicle and its related depreciation. full question
The annual depreciation for the refrigerator using the straight-line method would be calculated as follows: (Cost of the refrigerator - Estimated salvage value) / Useful life = ($198,500 - $30,500) / 15 years = $168,000 / 15 years = $11,200 per year.
First of all capital expenditure should be estimated and after that on the basis of fixed assets purchase assumption depreciation can be calculated.
Original cost, estimated salvage value, and estimated useful life.
that the amount of periodic depreciation be changed in the current year and in future years.
$16,250
Open End lease
Open-end lease
The formula for reducing balance method of depreciation is r = 1 - (S/C)1/n. The r stands for rate of depreciation, n stands for estimated useful life of asset, S stands for residual value after the expiry of useful life, and C stands for the original cost of asset.