The "Prime Cost method" calculates:
64200 * (365/365) * 18.75% = 12,037.5, since it's less then OAV, the depreciation is 9683.
![](https://s3.amazonaws.com/cdn.freshdesk.com/data/helpdesk/attachments/production/60094080736/original/p0Z95Z5IvdcGHFeP4T1J7_mStpq5izbEUQ.png?1690938531)
![](https://s3.amazonaws.com/cdn.freshdesk.com/data/helpdesk/attachments/production/60094080735/original/1HWr8wIP69QIBM1YKCgCNkPAob_CXEaF2g.png?1690938529)
Modified on: Wed, 2 Aug, 2023 at 9:09 AM
The "Prime Cost method" calculates:
64200 * (365/365) * 18.75% = 12,037.5, since it's less then OAV, the depreciation is 9683.
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