Using the “straight line method” and “Inland Revenue” approved method of depreciation calculate the depreciation for a new excavator valued at ?65,000 with a working life of 10 years and explain the residual values.
without delay line depreciation ability it is depreciating (going decrease) at a relentless fee. Like, it would not lose 5 in a million seconds and then 40 interior the subsequent. without delay line appreciation is the same, yet going greater. desire I helped! :)
Is there a salvage value at the end of the excavator's working life? I have no idea about the Inland Revenue approved method, sorry. You should think equal division when the term straight line method comes up in depreciation terms. You just divide the initial value over the number of working life years and that will give you the depreciation per year. In this case, the excavator depreciates at ?6,500 per year.
do question 1 and 3 in the exam, theyre easier! good luck on the 4th may
