Australia Help! Depreciation


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Hi everyone I am doing exercises for financial accounting and I am stuck with depreciation.

Depreciation for the office equipment is calculated using the units of production method; the total number of usage hours for the office equipment over its useful life is 5,000 hours.

During the month thr office equipment was used for 210.

The formula I am using is
Depreciable amount / operating hours

I am not sure which amount use for depreciable amount.
In the statement of financial position I have office equipment at cost: 8,338

Minus accumulated depreciation: 3,335
= 5,003

Mi question is: for depreciable amount should I use the office equipment at cost (8,338) or the value attained from subtracting office equipment at cost - accumulated depreciation (5,003)?

Thank you guys!
 
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bklynboy

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You depreciate the cost of the asset - not the net amount after accumulated depreciation. In your case its 8,338. At the end of the depreciation accumulated will be -8,338 for a net BV of 0.
 

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