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    juggan1972's Avatar
    juggan1972 Posts: 1, Reputation: 1
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    #1

    Mar 16, 2012, 12:49 AM
    depreciation b com part 1 pakistan
    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's Avatar
    faizan qadeer Posts: 1, Reputation: 1
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    #2

    Aug 9, 2014, 01:28 PM
    8 year
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #3

    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.
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