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Depreciation

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					Depreciation  Straight Line: Depreciation = (Purchase Cost – Expected Residual Value) / Service Life  Reducing Balance: Depreciation = Current Book Value * Calculated Rate Calculated Rate = 1 
rv
n

where n = years of service, rv = residual value, pc = purchase cost.

pc

 Consumption: Depreciation =

rh y rh l

  pc  rv  where rhy = running hours this year, rhl = lifetime running hours.


				
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posted:6/16/2009
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