Depreciation Book Value Formula
The result is the depreciable basis or the amount that can be depreciated. The assumption in this depreciation method is that the annual cost of depreciation is the fixed percentage 1 - K of the Book Value BV at the beginning of the year. Book Value Of Assets Definition Formula Calculation With Examples Divide the sum of step 2 by the number arrived at in step 3 to get. . Determine the useful life of the asset. On April 1 2012 company X purchased a. In our example the NBV of the logging companys truck after four years would be 140000. Under this method we charge a fixed percentage of depreciation on the reducing balance of the asset. The following is the amount written off over three years assuming a rate of depreciation of 15 using this method. Book Value 800 - 400. To calculate depreciation using the straight-line method subtract the assets salvage value what you expect it to be worth at the end of its u