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Thread: Calculating Depreciation

  1. #1
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    Calculating Depreciation

    I am trying to calculate the depreciation on a truck used by a transport company.

    I know the value of the vehicle R371 000.00 and the expected useful life of the vehicle must be 3yrs according to SARS

    Please can someone help me with the residual value?

  2. #2
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    R1 is fine

  3. #3
    Site Caretaker Dave A's Avatar
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    Personally, as vehicles make up such a large proportion of my fixed assets, I prefer to reflect the fair market value in my balance sheet.

    Thus I have sub-accounts for each vehicle for accumulated depreciation (for taxcalc) and depreciation adjustments (to return nett asset value to fair market value).

    It leads to other complications, of course, like deferred tax entries and a tax calc which is quite far removed from the reflected income statement - but definitely results in a better reflection of the actual financial position of the business and is worth the schlep (at least in my case).
    The trouble with opportunity is it normally comes dressed up as work.

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