Depreciation calculation

jinesh.gala92
Posts: 1
Joined: Wed Oct 19, 2016 4:38 am

Depreciation calculation

Postby jinesh.gala92 » Tue Jun 13, 2017 9:31 am

I have a doubt regarding Q35 page 124 on hock material volume 1. In the solution they have deducted the salvage value to calculate depreciation and in volume 2 page 139, they have mentioned not to deduct the salvage value for tax purposes. So are we supposed to deduct the salvage value only for tax purposes?

edupristine
Finance Junkie
Posts: 873
Joined: Wed Apr 09, 2014 6:28 am

Re: Depreciation calculation

Postby edupristine » Mon Sep 18, 2017 9:47 am

The method of calculating the depreciation might be different under the accounting and the tax methods but we DO need to deduct the salvage value in both the cases under US GAAP. Thanks.


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