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business > red > Flashcards

red Flashcards

1
Q

Straight line depreciation

A

(historic value – residual value)/expected life

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2
Q

Reducing balance depreciation YR 1

A

Yr 1 net book value = historic cost - (historic cost x depreciation %)

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3
Q

Reducing balance depreciation YR 2

A

Yr 2 net book value = yr 1 net book value – (yr 1 net book value x depreciation %)

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