Depreciation

Straight Line Method

Example

Reducing Balance Method

For this method, we need to determine the RATE of depreciation before we calculate the provisions:

Where n is the working life of the asset, years

S is the selling value of the asset

C is the initial cost of the asset

Example

Units of Production Method

Example

Sum of the Year’s Digits Method

Example

Where n is the working life of the asset in years

Depletion Method

Example

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© Duncan Williamson

August 2001