Depreciation Flashcards
1
Q
Residual Value
A
The estimated amount that would currently be obtained from disposing of the asset
2
Q
Straight line method
A
Depreciation charge per year = (cost - residual value)/useful life
OR
Depreciation charge = % x Cost
3
Q
Carrying amount
A
Cost less accumulated depreciation
4
Q
Reducing balance method
A
Annual depreciation charge = carrying amount x %
5
Q
Profit/loss on sale
A
Proceeds less carrying amount = profit/loss
