A company purchased a plant for Rs 10000. It is expected that its useful life will be 3 years and salvage value Rs 1000. You are required to determine the rate of depreciation and amount of depreciation to be provided in the first year as per written down value method.
can anyone tell me how to calculate this
thanks in advance:)
MOHIT MAHAJAN
(LCS, ACA)
(2050 Points)
Replied 20 November 2009
Formula for calculating depreciation rate by WDV method is-:
1 – (Salvage value)1/life
Cost
In your quest.-:
1 – (1000)1/3
10,000
(I dont know how to solve the bracket part i.e.(0.1)1/3
1 - 0.464225637
Dep. rate= 53.58%
If you have answer, plz verify from it.
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