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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 ?
No, when using the reducing balance method any expected scrap value is irrelevant and is ignored.
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