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capital budgeting

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(Querist)
24 May 2009 sir,
pls tell me in capital budgeting chapter...
1)if asset is depriciated on SLM basis...and scrap is given then should the asset be depriciated at cost-scrap value??is it always true or differs from question to question??
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Sachidanand Singh

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Sachidanand Singh (Expert)
25 May 2009 This is the standard practice - SLM dep will be (Cost - Expected scrap value)/ Life of asset
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Vipul J. Bhavsar

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Vipul J. Bhavsar (Expert)
26 May 2009 If the depreciation is charged as per SLM method, then depreciation is charged always as Cost-scrap value.Its applies to all the questions.
The treatment changes if the method is WDV or any other method.
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