Question

Explain determinants of the amount of depreciation.

Answer 1

Explanation:

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Answer 2

The determinants of the amount of depreciation:

The amount of depreciation is the value of an asset that has been reduced over the time either maybe due to wear or tear. The following are the major determinants of the amount of depreciation:

• Asset cost - Cost price of the asset

• Salvage value - Estimated book value of the asset after it has been depreciated

• Period of usage - Window of time that the asset has been used. It can be years, months, hours, or units produced (Quantity).

• Obsolescence - After a specific period of time, every assets loses its novel value.

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A new computer costs rs.60,000.Rhe depreciation of computer is very high as new models withbetter technology advantages coming inti the market . If the depreciation ia as high as 40 %every year .find the worth of the computer after two years