Qualification > Commerce

Account help

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avin:
If the question is:

The depreciation for the equipment is 10% straight line. It is expected that it has a residue value of $ 4000.

Is the formula for this depreciation is (cost - residue value) *10%  ???

What happen if the question doesnt specify the depreciation method but only give us the accumulated depreciation, depreciation expense, cost price and the percentage of depreciation?

How should i know which depreciation to follow??

Thanks in advance.

Dasith:
Since they've given the % , calculate the st.line dep from cost & see if you get the Dep exp
IF not
Use reducing balance [COST-(Accumulated.DEP)] x % = SEE IF YOU GET THE DEP EXPENCE theve given

they should fall into one them...

avin:
Thanks Dasith,

for the first part, we still need to minus the residue value from the cost before times the % right?

[(cost - residue value)/ useful life] * %

Dasith:
yeap u minus from cost if there is supposed to be a scrap/ residual value @ da end

avin:
Thanks Dasith, u helped me a lot.

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