Annual depreciation rate for equipment = (1 - estimated net salvage rate) ÷ Estimated useful life (in years) × 100%Monthly depreciation = Original cost of fixed assets × Annual depreciation rate ÷ 12
Short for "depreciation rate for fixed assets". Calculated as the ratio of fixed asset depreciation to the original value of fixed assets. It reflects the extent to which the value of fixed assets is apportioned to costs.
The depreciation of fixed assets should be calculated firstly by calculating the annual depreciation rate, taking into account the original value of the fixed assets, net salvage value, useful life and other factors, and then the average depreciation in each month. Depreciation rate includes individual depreciation rate, classification depreciation rate and comprehensive depreciation rate. The annual depreciation rate is the abbreviation of "annual depreciation rate of fixed assets".
The annual depreciation of fixed assets and the ratio of the original value, which reflects the extent to which the value of fixed assets transferred to the cost of products or related expenses during the year. The annual depreciation rate divided by 12 is the monthly depreciation rate.
Expanded:
The tax law provides for depreciation of fixed assets. p>The tax law provides for depreciation of fixed assets over the following three years:
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 utensils, tools and furniture related to production and business;
The residual value rate is generally 5%. (5% for domestic enterprises and 10% for foreign enterprises) The salvage rate is the residual value of fixed assets. The salvage value is the value of the fixed asset when it is 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.
Baidu Encyclopedia - Depreciation Rate