calculate depreciation amount for plant which was purchase at the beginning of 2016 for 40,000 and...

calculate depreciation amount for plant which was purchase at the beginning of 2016 for 40,000 and has useful life of 10 years .

if the account information on 30 june 2018 .how to calculate depreciation amount

Expert Solution

Calculation of the Depreciation as on 30th June 2018:

Depreciation = (Cost of the Asset - Residual Value) / Useful Life

Particulars	Amount
Cost of Asset as on 01.01.2016	40000
Less: Depreciation for 2016	4000
WDV as on 01.01.2017	36000
Less: Depreciation for 2017	4000
WDV as on 01.01.2018	32000
Less: Depreciation upto 30.06.2018	2000
WDV as on 01.07.2018	30000

Depreciation for the period upto 30th June 2018 is 2,000.

ekkarill92 answered 3 years ago

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