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: