A machine costing 720,000 is estimated to have a book value of 40,545.73 when retired at the end of 10years. Depreciation cost is computed using a constant percentage of the declining book value. What is the annual rate of depreciaton in % ?

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A: Depreciation: It is the accounting method  by which cost of a tangible or physical asset is…

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A: Depreciation :— Depreciation means Gradual Decrease in the value of Assets due to normal wear, tear…

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A: Formula: Depreciation rate = ( 100 / Useful life years ) x 2

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A:

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A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: An equipment costing 250,000 has an estimated life of 15 years with a book value of 30,000 at the…

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Q: A machine costing P720,000 is estimated to have a life of 10 years. If the annual rate of…

A: Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.