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book value formula depreciation. Other Cost Include impairment cost and related costs which directly affect the cost of the asset. D annual depreciation The book value after the number of years original cost Number of year depreciation Example of Straight line method.
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As a result book value can also be. In the example above the assets book value after 6 years would be 10000 - 6000 or 4000. 250000 workout the depreciated cost at the end of 7 year if the salvage value is Rs.
Depreciation expense is an indirect expense and important accounting procedure for an organization to estimate the book value of an asset after its usage during the accounting period.
Depreciation Rate Rn 15 02 Annual Depreciation Amount Dn 350000 x 02 70000 n BVn-1 Dn BVn 0 0 0 350000 1 350000 70000 280000 2 280000 70000 210000 3 210000 70000 140000 4 140000 70000 70000 5. Therefore the book value is 85 Calculating the Present Amount or Worth when the Book Value the Salvage Value the Total Estimated Life of the Asset and the Number of years of the Asset is Given. The present value of machine is Rs. Annual Rate of DepreciationK.
