accounting






 

Question by  clpm (15)

Can you tell me how to calculate depreciation?

 
+6

Answer by  Kurt (4579)

The most common way is to estimate the life of the asset ( example - 3 years for a computer ) and take an equal monthly expense over that time.

 
+5

Answer by  Math68 (308)

Depends on the type of depreciation. For straight-line depreciation: take the cost of the item and divide it by the number of years you intend to have it in service.

 
+5

Answer by  Corine2010 (17)

The Straight Line method spreads the cost of the asset equally over its estimated life. Hence the depreciation amount remains the same over the life of the asset. The Reducing Balance depreciation is calculated on the reduced balance of the asset after deducting the depreciation.

 
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