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business > red > Flashcards

red Flashcards

1
Q

Straight line depreciation

A

Straight line depreciation
(historic value – residual value)/expected life

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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…..

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