Calculate the rate of depreciation:By SLM method:Q1.The Asset purchase

1.	Calculate the rate of depreciation:By SLM method:Q1.The Asset purchased as on 31 March 2014, the cost of Asset was 350000 Rs, The installationcharges incurred were 50,00D. The residual value of the Asset was 50,000 Rs. and useful life of theAsset is 5 years calculate the rate of depreciation
Answer» Ans :- The straight line calculation steps are: Determine the cost of the asset. Subtract the estimated salvage value of the asset from the cost of the asset to get the total depreciable amount. Determine the useful life of the asset. Divide the sum of step (2) by the number arrived at in step (3) to get theannual depreciationamount.

Calculate the rate of depreciation:By SLM method:Q1.The Asset purchased as on 31 March 2014, the cost of Asset was 350000 Rs, The installationcharges incurred were 50,00D. The residual value of the Asset was 50,000 Rs. and useful life of theAsset is 5 years calculate the rate of depreciation

Answer»

Ans :- The straight line calculation steps are:

Determine the cost of the asset.

Subtract the estimated salvage value of the asset from the cost of the asset to get the total depreciable amount.

Determine the useful life of the asset.

Divide the sum of step (2) by the number arrived at in step (3) to get theannual depreciationamount.