Answer to Question #99170 in Economics for Mayur

Question

When rate of depreciation is given as 20% , why is rate of depreciation calculated above.
understand that rate of depreciation is fixed i.e. 20% for all the years.
need clarification on the calculations

Answer 1

Yes in government data the rate of depreciation is fixed per years for current and non current assets. But for different inventories, the rate of depreciation is different. Like in case of computer, the rate of depreciation is 40%. In case of building it is 10% per annum.

This is based on annual and approximated for doing work rapidly. And it is a kind of abstract of depreciation

During education we needs to go for detail analysis for any kind of work. That's why depreciation is needs to be calculated in details through different methods. So it also permits to calculate the depreciation for fraction period viz.3.5 years