Depreciable Cost of Asset Calculator

✖Purchase Cost refers to the total amount paid to acquire an asset.ⓘ Purchase Cost [PC]			+10% -10%
✖Salvage Value is the estimated value that an asset will have at the end of its useful life.ⓘ Salvage Value [SV]			+10% -10%

✖Depreciable Cost refers to the portion of an asset's cost that can be depreciated over its useful life.ⓘ Depreciable Cost of Asset [DC]

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Formula

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Depreciable Cost of Asset

Formula

`"DC" = "PC"-"SV"`

Example

`"365000"="410000"-"45000"`

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Depreciable Cost of Asset Solution

STEP 0: Pre-Calculation Summary

Formula Used

Depreciable Cost = Purchase Cost-Salvage Value
DC = PC-SV
This formula uses 3 Variables

Variables Used

Depreciable Cost - Depreciable Cost refers to the portion of an asset's cost that can be depreciated over its useful life.
Purchase Cost - Purchase Cost refers to the total amount paid to acquire an asset.
Salvage Value - Salvage Value is the estimated value that an asset will have at the end of its useful life.

STEP 1: Convert Input(s) to Base Unit

Purchase Cost: 410000 --> No Conversion Required
Salvage Value: 45000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

DC = PC-SV --> 410000-45000

Evaluating ... ...

DC = 365000

STEP 3: Convert Result to Output's Unit

365000 --> No Conversion Required

FINAL ANSWER

365000 <-- Depreciable Cost

(Calculation completed in 00.004 seconds)

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Credits

Created by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has created this Calculator and 200+ more calculators!

Verified by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has verified this Calculator and 25+ more calculators!

< 17 Asset Management Calculators

Seller's Discretionary Earnings

Go Seller Discretionary Earnings = Pre-Tax Income+Owner's Salary+Net Interest Expenses+Depreciation and Amortization+Discretionary Expenses+Non Recurring Expenses

Amortization of Intangible Assets

Go Amortization Expense = (Historical Cost of Intangible Asset-Residual Value)/Useful Life Assumption

Cash Available for Distribution

Go Cash Available for Distribution = Funds from Operations+Non-Recurring Items-Capital Expenditures

Residual Income

Go Residual Income = Operating Income-Minimum Required Rate of Return*Average Operating Assets

Net Capital Spending

Go Net Capital Spending = Ending Net Fixed Assets-Beginning Net Fixed Assets+Depreciation

Capital Structure

Go Capital Structure = Common Equity Weight+Debt Weight+Preferred Stock Weight

Allowance Method of Doubtful Accounts

Go Net Accounts Receivables = Gross Accounts Receivables-Allowance for Doubtful Accounts

Operating Working Capital

Go Operating Working Capital = Operating Current Assets-Operating Current Liabilities

Inventory Write-Down

Go Inventory Write Down = Historical Cost-Lower of Cost or Net Realizable Value

Net Realizable Value

Go Lower of Cost or Net Realizable Value = Expected Sale Price-Disposal Costs

Net Identifiable Assets

Go Net Identifiable Assets = Identifiable Assets-Total Liabilities

Expense Ratio

Go Expense Ratio = Annual Operating Expenses/Average Fund Assets

Inventory Days

Go Inventory Days = (Average Inventory/Cost Of Goods Sold)*365

Basic Earnings Power Ratio

Go Basic Earnings Power Ratio = Operating Income/Total Assets

Internal Growth Rate

Go Internal Growth Rate = Retention Ratio*Return on Assets

Depreciable Cost of Asset

Go Depreciable Cost = Purchase Cost-Salvage Value

Conversion Price

Go Conversion Price = Par Value/Conversion Ratio

Depreciable Cost of Asset Formula

Depreciable Cost = Purchase Cost-Salvage Value
DC = PC-SV

What is Depreciable Cost?

Depreciable cost, also known as depreciable basis or depreciable amount, refers to the portion of an asset's cost that can be depreciated over its useful life for tax or accounting purposes. It represents the initial cost of the asset minus its salvage value or residual value. This concept is crucial in determining the annual depreciation expense of an asset, which is the amount by which the asset's value is reduced each year due to wear and tear, obsolescence, or usage.
The depreciable cost is calculated to ensure that an asset's cost is allocated over its useful life in a systematic and rational manner. This allows businesses to match the expense of using the asset with the revenues it generates over time, thereby reflecting a more accurate picture of the asset's consumption or usage.

How to Calculate Depreciable Cost of Asset?

Depreciable Cost of Asset calculator uses Depreciable Cost = Purchase Cost-Salvage Value to calculate the Depreciable Cost, The Depreciable Cost of Asset is the cost basis of the depreciation expense following a capital expenditure. Depreciable Cost is denoted by DC symbol.

How to calculate Depreciable Cost of Asset using this online calculator? To use this online calculator for Depreciable Cost of Asset, enter Purchase Cost (PC) & Salvage Value (SV) and hit the calculate button. Here is how the Depreciable Cost of Asset calculation can be explained with given input values -> 365000 = 410000-45000.

FAQ

What is Depreciable Cost of Asset?

The Depreciable Cost of Asset is the cost basis of the depreciation expense following a capital expenditure and is represented as DC = PC-SV or Depreciable Cost = Purchase Cost-Salvage Value. Purchase Cost refers to the total amount paid to acquire an asset & Salvage Value is the estimated value that an asset will have at the end of its useful life.

How to calculate Depreciable Cost of Asset?

The Depreciable Cost of Asset is the cost basis of the depreciation expense following a capital expenditure is calculated using Depreciable Cost = Purchase Cost-Salvage Value. To calculate Depreciable Cost of Asset, you need Purchase Cost (PC) & Salvage Value (SV). With our tool, you need to enter the respective value for Purchase Cost & Salvage Value and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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