Liquid oxygen storage tank depreciation calculation method:
Liquid oxygen storage tank is a kind of equipment used to store liquid oxygen, usually made of stainless steel or aluminum alloy. The depreciable life of a liquid oxygen storage tank is calculated as follows:
1. First determine the expected useful life of the liquid oxygen storage tank, usually 10 years.
2. Then calculate the residual value of the tank, that is, at the end of its useful life, the tank can still be sold for. Typically, the salvage value of an oxygen tank is 10% of its original price.
3. Finally, use straight-line depreciation to calculate the annual depreciation expense based on the original cost, estimated useful life, and salvage value of the tank. Depreciation expense = (original cost - salvage value) ÷ estimated useful life.
For example, a liquid oxygen storage tank has an original cost of 100,000 yuan, an estimated useful life of 10 years and a salvage value of 10,000 yuan. The annual depreciation expense would be ($100,000 - $10,000) ÷ 10 years = $90,000 ÷ 10 years = $90,000 per year.
Calculation of depreciation for cylinders filled with oxygen:
Cylinders filled with oxygen are a type of equipment used to store oxygen and are usually made of high-strength steel. The depreciable life of an oxygen-filled cylinder is calculated as follows:
1. First, determine the estimated useful life of the oxygen-filled cylinder, usually 15 years.
2. Then calculate the residual value of the oxygen cylinder, which is the price at which the cylinder can be sold at the end of its useful life. Typically, the residual value of an oxygen cylinder is 20% of its original price.
3. Finally, the annual depreciation expense is calculated using the straight-line depreciation method based on the original cost, estimated useful life, and salvage value of the oxygen-filled cylinder. Depreciation expense = (original cost - salvage value) ÷ estimated useful life.
For example, a cylinder containing oxygen has an original cost of $500, an estimated useful life of 15 years, and a salvage value of $100. The annual depreciation expense would be ($500 - $100) ÷ 15 years = $400 ÷ 15 years = $26.67/year.
In short, liquid oxygen storage tanks and cylinders containing oxygen are important industrial equipment, and the calculation of their depreciable lives can help companies better manage their equipment, reasonably arrange for equipment renewal and maintenance, and improve productivity and economic efficiency.