Spain Depreciation of a Vehicle

[VeronikaVR]

Dear all,

I´m working as administrative but I am trying to do some accounting and I need help.

We have bought a second hand card, it has 6 years. And I do not know how to calculate the depreciation of it.

One of my colleague think that I should divide the cost of the vehicle that I paid between the years we expected that it will be used in our company. In that case, if we expect to use 10 years more (16 years the car will have),

17000 cost of the car/10 years=1700EUR and it will be the annual depreciation cost. The montlhly depreciation would be 141.6EUR.

Could you please advice if this is ok or how to do it?

Thank you in advance.

Regards,

Verónica

 

[bklynboy]

Yes. Depreciate cost over the useful life less any salvage that you could sell for at the end of the term. Straight line each year is fine.