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Depreciation Causes, Methods of Calculating, and Examples
Let’s say you need to determine the depreciation of a delivery truck. It has a salvage value of $3,000, a depreciable base of $27,000, and a five-year useful life. When a company purchases an asset, management must decide how to calculate its depreciation. Tangible (physical) assets depreciate, while you expense […]
The Best Method of Calculating Depreciation for Tax Reporting Purposes
The decisions that are made about how much depreciation to charge off are influenced by the accountant’s judgment. The two main assumptions built into the depreciation amount are the expected useful life and the salvage value. While companies do not break down the book values or depreciation for investors to […]
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What Are Margin Rates?
The interest charges are applied to your account unless you decide to make payments. Over time, your debt level increases as interest charges accrue against you. Therefore, buying on margin is mainly used for short-term investments. The longer you hold an investment, the greater the return that is needed to […]