Depreciation Flashcards
1
Q
Straight line depreciation
A
(historic value – residual value)/expected life
2
Q
Reducing balance depreciation
A
Yr 1 net book value = historic cost - (historic cost x depreciation %)
Yr 2 net book value = yr 1 net book value – (yr 1 net book value x depreciation %)
And so on…..