Depreciation

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    Created by
    Jamie

    Cards (3)

    • There are 2 kinds of deprecation:
      Straightline/On Cost
      Diminishing Balance
    • This is the formula for working out Straightline Depreciation
    • Example of a diminishing balance depreciation calucaltion:

      Suppose you have an asset with a cost of $10,000, a residual value of $1,000, and a depreciation rate of 20% per year. Let's calculate diminishing balance depreciation for the first few periods: