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how to calculate book value depreciation. The useful life is 20 years and the salvage value is 1000 so the depreciation for each year is 2450 50000 - 1000 divided by 20. Beginning Book Value Total Depreciable Cost Depreciation Rate Depreciation Expense Accumulated Depreciation and Ending Book Value.
The formula for calculating book value. Starting book value is 23500 and the depreciation amount is. To calculate the year-two expense multiply the 135000 book value by 50 to get 67500.
Starting book value is 40500 and the depreciation amount is 20 or 17000.
The useful life is 20 years and the salvage value is 1000 so the depreciation for each year is 2450 50000 - 1000 divided by 20. Net Book Value Original Asset Cost Accumulated Depreciation. Note how the book value of the machine at the end of year 5 is the same as the salvage value. The depreciation rate is the annual depreciation amount total depreciable cost.