How to Calculate Depreciation on Fixed Assets3
How to Calculate Depreciation on Fixed Assets
Determine the expected lifespan of the asset.
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Divide 100% by the number of years in the asset life and then multiply by 2 to find the depreciation rate.
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Determine the asset's purchase price.
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Multiply the current value of the asset by the depreciation rate.
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Stop accumulating depreciation in any year in which the depreciable cost falls below the salvage value.
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