Calculating Depreciation Methods
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jewels.p
Registered Posts: 1,774 Beyond epic contributor 🧙♂️
To calculate the percentage of reducing balance depreciation what is the simplest way to remember this. In my Osbourne Book it goes on about square roots and fourth roots but I have no idea having left school a long time ago. Is there a way to do this formula without using roots?
Thanks
Thanks
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If Asset value was 100 in 08 and 90 in 09.
Then depreciation was 10.
10 over 100 is 10%.
What information does a question give you?0 
It says the formula is r = 1  n (square root sign) s/c
r = % rate of depreciation
n = number of years
s = residual value
c = cost of asset
No. of years depreciation = 4
Residual Value = £4,000
Cost of Asset = £20,0000
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