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On the depreciation method of fixed assets
The depreciation methods of fixed assets include life average method (also called straight-line method), workload method, double declining balance method, sum of years method and so on.

Life-average method is to evenly allocate the accrued depreciation of fixed assets to the expected service life of fixed assets, and the depreciation calculated by this method is equal in each period.

Calculation formula:

Annual depreciation rate =( 1- estimated net salvage value rate) ÷ estimated service life (year)

Monthly depreciation rate = annual depreciation rate ÷ 65438+February.

Depreciation amount = original price of fixed assets × monthly depreciation rate

Or:

Annual depreciation amount = (original price of fixed assets-estimated net salvage value) ÷ estimated service life (year) = original price of fixed assets ×( 1- estimated net salvage value rate) ÷ estimated service life (year)

Monthly depreciation amount = annual depreciation amount12

The workload method refers to a method to calculate the depreciation amount of each period according to the actual workload.

Calculation formula:

Depreciation amount of unit workload = [original value of fixed assets ×( 1- estimated net salvage value rate)] ÷ estimated total workload.

Monthly depreciation of fixed assets = workload of fixed assets in the current month (actual) × depreciation of unit workload.

Double declining balance method refers to a method to calculate the depreciation of fixed assets according to the initial net book value of fixed assets (book balance of fixed assets minus accumulated depreciation) and double straight-line depreciation rate without considering the residual value of fixed assets.

When the depreciation of fixed assets is accrued by the double declining balance method, the balance after deducting the estimated net salvage value from the net book value of fixed assets shall be evenly amortized within two years before the service life of fixed assets expires.

computing formula

Annual depreciation rate =2÷ estimated service life × 100%

Monthly depreciation rate = annual depreciation rate12

Monthly depreciation amount = net book value of fixed assets at the beginning of the month × monthly depreciation rate