BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Depreciable amount is the cost of an asset, or other amount substituted for cost, less its residual value. Depreciation is the systematic allocation of the depreciable amount of an asset over its useful life.

Detailed explanation-2: -3.4 Depreciable amount of a depreciable asset is its historical cost, or other amount substituted for historical cost1 in the financial statements, less the estimated residual value.

Detailed explanation-3: -Dictionary Definition The Depreciable Amount (also known as the basis for depreciation) is the cost of an asset, or other amount substituted for cost (in the financial statements), minus it’s residual value.

Detailed explanation-4: -Depreciable asset is generally an asset used for generating income or profit and has a useful life of more than a year and gradually reduces in value over time. It is a type of physical asset that is capable of depreciation treatment under tax laws in accordance with the Internal Revenue Service rules.

Detailed explanation-5: -The residual value, also known as salvage value, is the estimated value of a fixed asset at the end of its lease term or useful life. In lease situations, the lessor uses the residual value as one of its primary methods for determining how much the lessee pays in periodic lease payments.