The annual depreciation
charges are calculated by following methods.
( 1 ) Straight line
method
Annual
depreciation charge = P – S / n
Where P = Initial
cost of equipment / plant
S = Salvage /
Scrap value of equipment / plant
n = Life of equipment
( 2 ) Diminishing value
method
Value of equipment
after one year
S = P ( 1 – x )
Value of equipment
after 10th year
S = P ( 1 – x )10
Value of equipment
of n years
S = P ( 1 – x )n
Annual depreciation
x = 1 – ( S / P )n
Where
P = Initial cost
of equipment / plant
S = Salvage /
Scrap value of equipment / plant
n = Life of
equipment
r = Annual rate of
interest
x = Annual
depreciation
( 3 ) Sinking Fund
method
Annual depreciation
in the sinking fund method
q = ( P – S ) [ r
/ ( 1 + r )n – 1 ]
Where
P = Initial cost
of equipment / plant
S = Salvage /
Scrap value of equipment / plant
n = Life of
equipment
r = Annual rate of
interest
x = Annual
depreciation
Cost of equipment
after n year
= P – S
= q [ ( 1 + r )n
– 1 / r ]
Sinking fund
factor = r / { ( 1 + r )n – 1 }
Important Formula of Negative Feedback Amplifier
Important Formula of Transistor Biasing
Important Formula of Modulation & Demodulation
No comments:
Post a Comment