Accounting for IGCSE & O level - Accounting Procedures (Section 10 - No. 49)
What is the formula for calculating depreciation expense using the reducing balance method?
(Cost - Salvage Value) / Useful Life
Cost x Depreciation Rate
(Book Value - Salvage Value) / Remaining Useful Life
Book Value x Depreciation Rate
Explanation
The reducing balance method applies the depreciation rate to the book value of the asset.
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