Depreciation method
Posted: Wed May 27, 2009 11:22 am
Hi, I need advice for depreciation method problem, I want use depreciation method type flat, i still confuse which calculation basis and depreciable basis rule that I want choose.
Example:
Asset cost = 732.764
salvage value = 1
rate = 12,5%
1st year
Depreciation Expense = 732.764*0.125 = 91.596
Accumulated Depreciation = 91.596
2nd year
Depreciation Expense = (732.764-91.596)*0.125 = 80.146
Accumulated Depreciation = 91.596+80.146 = 171.742
Example:
Asset cost = 732.764
salvage value = 1
rate = 12,5%
1st year
Depreciation Expense = 732.764*0.125 = 91.596
Accumulated Depreciation = 91.596
2nd year
Depreciation Expense = (732.764-91.596)*0.125 = 80.146
Accumulated Depreciation = 91.596+80.146 = 171.742