Calculating Depreciation

Question 1

calculating depreciation

Answer 1

1. The straight line method 1
   = (Cost - Expected residual value) ÷ Expected years of useful life
2. The straight line method 2
   This is if you are told that the depreciation is, for example, 20% using the straight line method. You just need to multiply the cost of the asset by 20% to calculate the amount of depreciation for the year.
3. The reducing balance method = Percentage x Net book value
   If an asset is new, it is that percentage of its cost.
   You will be told what percentage to use.