In depreciation, how is fix asset of a company calculated

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How do we calculate this type of a question

Posted Fri 15th March, 2013 @ 10:03 by Popoola Oluwaseyi

1 Answer

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A fixed asset is something a company has a long period of time to pay for such as a company car. The depreciation side is really simple, if a car cost £10,000 and the depreciation was 10% for 5 years then that means that;

10% of £10,000 = £1,000

£1,000 x 5 Years = £5,000

At the end of these five years the car is worth £5,000 and your fixed asset is paid off.

Answered Tue 26th March, 2013 @ 14:23 by Peter Thurgood