V I x 1 rn. Three methods of calculating depreciation exist. The simplest and most commonly used straight line depreciation is calculated by taking the purchase or acquisition price of an asset subtracted by the salvage value divided by the total productive years the asset can be reasonably expected to benefit the company called useful life in accounting jargon.
Solve for the depreciation reserve for the third year.
800 which is accounted. I Initial value. Declining balance method of depreciation is an accelerated depreciation method in which the depreciation expense declines with age of the fixed assetDepreciation expense under the declining balance is calculated by applying the depreciation rate to the book value of the asset at the start of the period. Depreciation per unit FC - SV Total number of coins Depreciation per unit 200 000 - 20 000 300 000 Depreciation per unit 060.