For example if the depreciable value of the asset is 800 and you expect it to last 5 years then the depreciation is 800 5 160. B P P St N. The depreciation rate is the annual depreciation amount total depreciable cost.
D annual depreciation The book value after the number of years original cost Number of year depreciation Example of Straight line method.
This will result in the book value of the asset. The calculation of book value for an asset is the original cost of the asset minus the accumulated depreciation where accumulated depreciation is the average annual depreciation multiplied by the age of the asset in years. B P P St N. This means the net book value of the truck would be 65000 after five years.