Question

Under Reducing

Balance

Method,

depreciation to

be charged :
(a) Scrap Value

(b) None of

these

(c) Real Value

(d) Original

value​

Answer 1

Answer:

b none of these

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Answer 2

Answer: Non of these,

The scrap value can also be used to calculate the depreciation expense. Using our example above, if the company estimated a $3,000 residual value for the machinery at the end of 8 years, then it can calculate its depreciation expense per year to be ($75,000 - $3,000) / 8 = $9,000.

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