The tax law stipulates that the depreciation period of fixed assets is as follows:
1, 20 years of buildings;
2. The production equipment such as trains, ships, machines and machinery is 10 year;
3. Electronic equipment and means of transportation other than trains and ships, as well as appliances, tools and furniture related to production and operation, are five years;
The residual rate is generally 5%. (5% for domestic-funded enterprises and 10% for foreign-funded enterprises) The residual value rate is the residual value rate of fixed assets. Residual value is the value of fixed assets when they are scrapped.
For example, if the recorded value of fixed assets is 10000 yuan and the residual value rate is 5%, then the residual value of fixed assets when scrapped is 500 yuan.
If depreciation is accrued according to the straight-line method
Formula:
Depreciation rate = (purchase price-residual value)/purchase price or
Depreciation rate =( 1- residual rate)/depreciation period = depreciation expense/original value of fixed capital value.
Residual rate = residual value/purchase price
Annual depreciation amount = purchase price X( 1- residual rate)/depreciation period
Monthly depreciation amount = purchase price X( 1- residual rate)/depreciation period/12.