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Reducing balance basis: Depreciation

This topic has 1 reply, 2 voices, and was last updated 5 years ago by John Moffat.

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July 4, 2020 at 6:08 am #575885
Sourav9271
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Sir,
Do we have to take the Cost Price – Residual, Then depreciate its value
Or
Do we have to calculate depreciation regardless of residual value
July 4, 2020 at 11:21 am #575924
John Moffat
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If we are using reducing balance depreciation then any residual value is of no relevance in the calculation (except obviously for calculating any profit or loss on sale in the year the asset is eventually sold).
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