In: Accounting
Stright line Method | |
Particulars | Stright line method |
Value of Truck(assumed as $) | 27000 |
Salvage value after 10 years($) | 1500 |
Net Value | 25500 |
Life of the Asset in years | 10 |
Depreciation per year 2020(25500/10) | 2550 |
Depreciation per year 2021(25500/10) | 2550 |
Units of activity method | |
Particulars | Units of activity method |
Value of Truck(assumed as $) | 27000 |
Salvage value after 10 years($) | 1500 |
Net Value | 25500 |
Life of the Asset in miles | 102000 |
Depreciation per miles($)(25500/102000) | 0.25 |
Actual miles in 2020 | 12800 |
Depreciation for 2020(12800*.25)$ | 3200 |
Actual miles in 2021 | 14300 |
Depreciation for 2021(14300*.25)$ | 3575 |
Double declining Stright line method | |
Particulars | Double declining Stright line method |
Value of Truck(assumed as $) | 27000 |
Salvage value after 10 years($) | 1500 |
Net Value | 25500 |
Life of the Asset in years/miles | 10 |
Depreciation per year 2020(25500/10)*2 | 5100 |
Depreciation per year 2021(25500/10)*2 | 5100 |