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"since the calculation of depreciation is based on
estimate,notfacts,why bother to make the calculation?
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Answer Posted / maged
We have two methods to make the depreciation:
1- Direct Method:
Dep.=(Cost - Resedual Value) / useful life.
2- Double Declining Method:
Dep.= Book Value * Depreciation percentage
as Book Value =[Cost-Accumulated Dep.]
And note, we have estimations depend on basics.
like; How much this asset will be used and for how long
time and its quality and is it cabable to be used in this
process?
| Is This Answer Correct ? | 2 Yes | 6 No |
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