I searched a lot for anyone to explain how this percentage was achieved, but I could not find anyone else. I really congratulate you on this video and I will recommend it in my blog to watch it
Thank you! I greatly appreciate the recommendation. Please also "like" the video (if you have not already) since this will help the RUclips Algorithm to recommend it to others. This video deserves more views...but of course, I'm biased! Thank you again for the comments and the recommendation!
@@EngineeringEconomicsGuy, Of course, my friend, I liked, subscribed, commented, and shared on my blog It's nice to thank those who provide good content
so for a particular problem with some salvage value, purchase value and number of years, the rate % would be different for straight line method and declining balance method?
Well, for the straight line depreciation method there really is no "rate". The depreciation is the same amount each year. The concept of a rate only applies to the declining balance method.
is there ever a case where the depreciation rate over a time span of n-years is not constant? For example, is it possible in this problem that we have different depreciation rates over the span of 10 years to arrive at that salvage value, or would the depreciation rate be constant with our solved rate?
The depreciation rate is always constant. If the actual salvage value is different than the book value when the asset is 'disposed of', then the company needs to either claim more depreciation that year (if the asset sells for less than the book value), or 'give back' some depreciation (if the asset sells for more than the book value) when they file their taxes.
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I searched a lot for anyone to explain how this percentage was achieved, but I could not find anyone else. I really congratulate you on this video and I will recommend it in my blog to watch it
Thank you! I greatly appreciate the recommendation. Please also "like" the video (if you have not already) since this will help the RUclips Algorithm to recommend it to others. This video deserves more views...but of course, I'm biased! Thank you again for the comments and the recommendation!
@@EngineeringEconomicsGuy, Of course, my friend, I liked, subscribed, commented, and shared on my blog
It's nice to thank those who provide good content
Thank you!!!
you are the best among the those who tries learn this concept
Thank you for the compliment!
gooood
so for a particular problem with some salvage value, purchase value and number of years, the rate % would be different for straight line method and declining balance method?
Well, for the straight line depreciation method there really is no "rate". The depreciation is the same amount each year. The concept of a rate only applies to the declining balance method.
is there ever a case where the depreciation rate over a time span of n-years is not constant? For example, is it possible in this problem that we have different depreciation rates over the span of 10 years to arrive at that salvage value, or would the depreciation rate be constant with our solved rate?
The depreciation rate is always constant. If the actual salvage value is different than the book value when the asset is 'disposed of', then the company needs to either claim more depreciation that year (if the asset sells for less than the book value), or 'give back' some depreciation (if the asset sells for more than the book value) when they file their taxes.