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View Full Version : Depreciation b com part 1 pakistan


juggan1972
Mar 16, 2012, 12:49 AM
Aneel & Company purchased an equipment for Rs. 700,000/=. The estimated resale value at the end of its useful life is Rs. 60,000/= The Company uses straight line method for computing depreciation. The quarterly depreciation of the equipment is Rs. 20,000/=

REQUIRED: Compute total life in years of the equipment.

faizan qadeer
Aug 9, 2014, 01:28 PM
8 year

pready
Aug 9, 2014, 02:08 PM
Start with your cost minus the salvage value to get the depreciable base.

Now since your depreciation amount is a quarterly amount take your depreciation amount times 4 to get your yearly depreciation amount.

Now take your depreciable base and divide it by the yearly depreciation amount to get your number of years of useful life.