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# what is the depreciation expence for each year if an asset will be depreciated in different % of the assets every year???

what is the depreciation expence for each year if an asset will be depreciated in different % of the assets every year???

for example, the Asset=20 million, year 1 the % of asset =30%, year 2 the % of the asset = 20%...

The depreciation expense is... View the full answer

• So use the book value to depreciate?
• 837202375aaa
• May 05, 2018 at 9:55pm
• Yes, you use the book value and the remaining balance.Thanks
• Lennah
• May 05, 2018 at 9:59pm

Depreciation expense will be calculated by... View the full answer

• I dont think year2 should use 20million to depreciate.
• 837202375aaa
• May 05, 2018 at 9:55pm
• Why? What's the depreciation method? Is it double declining balance?
• jesscantular
• May 05, 2018 at 9:57pm
• The problem stated only that percentage of the assets. It did not state net book value of assets
• jesscantular
• May 05, 2018 at 9:58pm
• If the method is double declining balance method, then you will use the net book value. But the problem did not state what method. Only percentage of assets. Or maybe you have the complete details of the problem and it's stated there.
• jesscantular
• May 05, 2018 at 10:00pm
• ummmm, that's why I am so confused about the question cuz it doesnt mention which method to use.
• 837202375aaa
• May 05, 2018 at 10:03pm
• Or maybe it want to say the % of A means depreciation rate in double declining balance method...
• 837202375aaa
• May 05, 2018 at 10:04pm
• Double declining method has a fixed depreciation rate.
• jesscantular
• May 05, 2018 at 10:05pm
• MACRS method has different depreciation percentage.
• jesscantular
• May 05, 2018 at 10:05pm
• If it is MACRS, then the cost amount is multiplied by the percentage not the book value.
• jesscantular
• May 05, 2018 at 10:07pm

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