Book Value

Question 1

what is diminished balance

Answer 1

The cost includes the amount you paid for the asset (excluding GST if entitled to claim it) as well as any additional amounts paid for transport, installation or making it ready to use.

Question 2

what is DB formula?

Answer 2

cost of asset x rate of depreciation / 100

Question 3

what is Straight-line depreciation

Answer 3

Straight-line depreciation isthe simplest method for calculating depreciation over time. Under this method, the same amount of depreciation is deducted from the value of an asset for every year of its useful life.

Question 4

what is the Straight-line depreciation formula

Answer 4

cost of asset - residual value / useful life of asset