11-04-2009, 04:46 PM
Dear.
Under straight Line method the yearly depreciation will be.Rs.10,000 (74700-14700=60,000 / 6 years)
and the other way is that
74700/6=12450/- depreciate each year 12450 and at the end it will be Rs.14700 (salvage value).
Please keep in mind that double declining method gives a percentage, and there is no percentage of depreciation is given in this questino.
regards,
Dawnish
Under straight Line method the yearly depreciation will be.Rs.10,000 (74700-14700=60,000 / 6 years)
and the other way is that
74700/6=12450/- depreciate each year 12450 and at the end it will be Rs.14700 (salvage value).
Please keep in mind that double declining method gives a percentage, and there is no percentage of depreciation is given in this questino.
regards,
Dawnish
