How to depreciate equipment, net salvage rate, depreciable life

1. The minimum years for calculating depreciation of fixed assets are as follows:

The tax law stipulates that the depreciable lives of fixed assets are as follows:

1. 20 years for houses and buildings;

2. 10 years for trains, ships, machinery, machines, and other production equipment;

3. 5 years for electronic equipment and means of transportation other than trains and ships, as well as for production- or business related apparatus, tools, furniture, etc., for 5 years;

The residual value rate is generally 5%. (5% for domestic enterprises and 10% for foreign enterprises) The salvage rate is the rate of residual value of fixed assets. The salvage value is the value of fixed assets when they are scrapped.

For example, if the recorded value of a fixed asset is 10,000 yuan, and the salvage rate is 5%, then the salvage value of the fixed asset at the time of scrapping is 500 yuan.

If depreciation is provided on a straight-line basis, [?]

Formula:

Depreciation rate = (purchase price - salvage value)/purchase price/depreciable life OR Depreciation rate = (1 - salvage rate)/depreciable life = depreciation expense/fixed capital value

Original value

Salvage rate = salvage value/purchase price

Annual depreciation=Purchase price X (1 - salvage rate)/depreciable life

months Depreciation amount=Buying price X (1-Residual value rate)/Depreciable life/12 2. And depreciation rate