Different Methods of Depreciation - Definition, Factors,
Apr 26, 2019· Annual Depreciation=Book Value of Asset×(Rate of Depreciation/100) Year 1: Annual Depreciation=500000×(27.5/100) Annual Depreciation=Rs. 137500. Year 2: Book Value=500000-137500,RS Ltd. bought a crusher worth Rs. 780000 on March 1, 2008. It has an estimated useful life of 12 years. The company adopted the sinking fund method and invested,Chapter 12 Depreciation - Oxford University Press,An asset is purchased for $100,000. The asset is depreciated using MACRS depreciation and a five year recovery period. At the end of the third year of use the business changed its product mix and disposed of the asset. The depreciation allowed in the third year is nearest to a. $9,600 b. $16,000 c. $19,200 d. $20,000 Solution D 3 = .192/2(100,000)How to Calculate Depreciation Rate % From Depreciation,,Annual Depreciation rate = (Cost of Asset – Net Scrap Value) /Useful Life There are various methods to calculate depreciation, one of the most commonly used methods is the straight-line method , keeping this method in mind the above formula to calculate depreciation rate (annual) has been derived.