91Ó°ÊÓ

Depreciation is an annual expense that is charged on an asset whose value is reduced due to weathering and depletion. The land is the only asset whose value increases with the passage of time and no depreciation should be charged for it.

Depreciation expense for 2017

$$\begin{gathered} \text{¶Ù±ð±è°ù±ð³¦¾±²¹³Ù¾±´Ç²Ô e³æ±è±ð²Ô²õ±ð}=\frac{\text{°ä´Ç²õ³Ù o´Ú a²õ²õ±ð³Ù}−\text{³§²¹±ô±¹²¹²µ±ð v²¹±ô³Ü±ð}}{\text{±«²õ±ð´Ú³Ü±ô l¾±´Ú±ð}}×\text{°Õ´Ç³Ù²¹±ô″¾¾±±ô±ð²õ c´Ç±¹±ð°ù} \\ =\frac{\$50,000−\$2,000}{160,000}×23,000 \\ =\frac{\$48,000}{160,000}×23,000 \\ =\$6,900 \end{gathered}$$

Depreciation expense for 2018

$$\begin{gathered} \text{¶Ù±ð±è°ù±ð³¦¾±²¹³Ù¾±´Ç²Ô e³æ±è±ð²Ô²õ±ð}=\frac{\text{°ä´Ç²õ³Ù o´Ú a²õ²õ±ð³Ù}−\text{³§²¹±ô±¹²¹²µ±ð v²¹±ô³Ü±ð}}{\text{±«²õ±ð´Ú³Ü±ô l¾±´Ú±ð}}×\text{°Õ´Ç³Ù²¹±ô″¾¾±±ô±ð²õ c´Ç±¹±ð°ù} \\ =\frac{\$50,000−\$2,000}{160,000}×31,000 \\ =\frac{\$48,000}{160,000}×31,000 \\ =\$9,300 \end{gathered}$$