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