sir if the question says original cost =$20000, 10% straight line depreciation then we will simply multiply the original cost with the % to get the depreciation expense for the year right?
Sir, great job with the lectures. I’m benefiting from them enormously. I do however have a problem with your very last illustration on the 10% straight line depreciation where you used the approach of 10% x cost/20000 = 2000 in determining the depreciation expense. I was of the opinion it was going to be just 10% of the original cost (which is 2000). Please clarify?
khizranzehraa says
sir if the question says original cost =$20000, 10% straight line depreciation then we will simply multiply the original cost with the % to get the depreciation expense for the year right?
John Moffat says
Correct – have you watched the free lectures on this?
opawale says
Sir, great job with the lectures. I’m benefiting from them enormously.
I do however have a problem with your very last illustration on the 10% straight line depreciation where you used the approach of 10% x cost/20000 = 2000 in determining the depreciation expense. I was of the opinion it was going to be just 10% of the original cost (which is 2000). Please clarify?
John Moffat says
But if you look again, the original cost is 20,000, and so the depreciation is 10% x 20,000 = 2,000 each year.