Question

Information required to calculate
Depreciation on fixed assets is Cost
of Asset Estimated Scrap Value and​

Answer 1

Information required to calculate depreciation on fixed asset is Cost of Asset, Estimated Scrap value and Estimated useful life.

Formula to calculate depreciation is

Depreciation = cost of asset - estimated scrap value/ estimated useful life

Answer 2

Answer:

Depreciation is an accounting technique for spreading out the expense of a tangible item over the course of its useful life. How much of an asset's value has been used is shown through depreciation.

Formula for calculating depreciation:

Depreciation on fixed assets =   $\frac{Cost \ of Asset - Scrap \ value }{Useful \ life }$ .

Hence , the cost of the asset less any salvage value over the course of its useful life is the fundamental formula for calculating depreciation.

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