91影视

Depreciation can be stated as the decline in the value of an asset over a useful period. All assets depreciate over time, except land whose value increases with the passage of time. Among the various methods of depreciation, straight-line depreciation is considered to be the simplest and error-free method.

Working note:

For calculating depreciation expense following formula should be used

$\text{顿别辫谤别肠颈补迟颈辞苍鈥塭虫辫别苍蝉别}=\text{颁辞蝉迟鈥塷蹿鈥塧蝉蝉别迟}脳\text{顿别辫谤别肠颈补迟颈辞苍鈥塺补迟别}$

Like, for calculating depreciation for 2017

$\begin{array}{c}\text{顿别辫谤别肠颈补迟颈辞苍鈥塭虫辫别苍蝉别}=\text{颁辞蝉迟鈥塷蹿鈥塧蝉蝉别迟}脳\text{顿别辫谤别肠颈补迟颈辞苍鈥塺补迟别}\\ \text{=\$50,000}脳\text{20\%}\\ \text{=\$10,000}\end{array}$

For computing depreciation following formula should be used.

$\text{顿别辫谤别肠颈补迟颈辞苍鈥塺补迟别}=\frac{\text{Year}}{\text{鲍蝉别蹿耻濒鈥塴颈蹿别鈥塷蹿鈥塧蝉蝉别迟}}$

Like, for 2017 depreciation rate is as follows:

$\begin{array}{c}\text{顿别辫谤别肠颈补迟颈辞苍鈥塺补迟别}=\frac{\text{Year}}{\text{鲍蝉别蹿耻濒鈥塴颈蹿别鈥塷蹿鈥塧蝉蝉别迟}}\\ =\frac{1}{5}\\ =20\%\end{array}$