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depriciation - Reducing balance methord

LLokesh5y ago
hi, John hope you are doing good. I came across a thing . in lecure and notes example 2 (reducing balance example) in depriciation doesnt include a scrap value , when we calculate through straight line we do reduce scrap value from original investment , DEP = Original cost - scrap value / life of asset , but, should i reduce scrapvalue in reducing balance methord too then calculate as explained by you ?
John MoffatJohn MoffatTutor5y ago#1
No, when using the reducing balance method any expected scrap value is irrelevant and is ignored.
LLokesh5y ago#2
Thank you sir !
John MoffatJohn MoffatTutor5y ago#3
You are welcome :-)
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