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Fixed method of depreciation is based on Fix rate on Asset amount. say if asset value is $100,000 and depreciation is @ 10% then this depreciation expenses is $10000
with fixed method Depreciation value (10,000) will not change.same depreciation is charge for coming years
Reducing Balance Method/Written Down Value Method is calculated on asset balance each year. say if asset value is $100,000 and depreciation is @ 10% then depreciation expenses is $10000 for 1st year but in 2nd year depreciation is based on Asset value $100,000-10,000=90,000*10%=9,000
with written down value method depreciation is calculated on asset balance every year
in case of fixed method the rate of depreciation is fixed in the value of assets.but in case of written down method the value of depreciation rate has been decided on the reducing value .
In Fixed Method Depreciation assets value become NIL and in Written down Value Method Assets Value never becom Zero.
