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
Ask the Tutor ACCA FA
Reducing balance basis: Depreciation
6y ago#1If 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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