Question

Depreciation on machinery

Answer 1

Answer:

For Machinery, General Rate of Depreciation is 15%. In addition, 20% Depreciation will be available in the first year for Industrial Undertaking and Power Generation Distribution business. However, if assets used for less than 180 days, then ½ of 35%(15%Normal Dep +20% Additional Dep) will be available

Explanation:

. Depreciation Allowed

Asset Class Rate of Depreciation

3 Building 100%

4 Furniture 10%

5 Plant and machinery 15%

6 Plant and machinery 30%

Each has a designated number of years over which assets in that category can be depreciated. Here are the most common: Three-year property (including tractors, certain manufacturing tools, and some livestock) Five-year property (including computers, office equipment, cars, light trucks, and assets used in construction)