Question

dep.on 100000 @10%p.a. from 1st july 2011 to 1st oct. 2014 i.e. for 3 years and 3 months

Answer 1

Annual Depreciation Expense = (Cost of Asset – Salvage Value)/Estimate Useful Life

Example:  A machine costs $75,000 to purchase and has estimated useful life of five years, upon which time it will have an estimated salvage value of $5,000.  Using the formula above, we can determine that annual depreciation will be $14,000 per year.  ($75,000-$5,000)/5 Years = $14,000.