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i have an asset worth £500,000. It has a life span of 4 years. The depreciation rate will be 15%pa (per Annam/year) using straight line method.

500,000 / 100 x 15 = 75,000

Year 1 dep = 75,000

Year 2 dep = 75,000

Year 3 dep = 75,000

Year 4 dep = 75,000

I have an asset worth £500,000, it has a life span of 4 years. The depreciation rate will be 15% pa (per Annam/year) using NBV method. NBV = net book value

500,000/100 x 15 = 75,000

Year 1 dep = 75,000 NBV of asset now = 425,000

Year 2 dep = 425,000/100 x 15 = 63,750 NBV of asset now = 361,250

Year 3 dep = 361,250/100 x 15 =54,187.50 NBV of asset now = 307,062.50

year 4 dep = 307,062.50/100 x 15 = 46,059.36 NBV of asset now = 261003.14

I hope this will help you with your understanding of deprecation values.

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