How to Calculate Depreciation Costs for a New Car After a Collision
1 Answers
Generally calculated at a residual value rate of 5%. This method is simple, intuitive, and complies with the "Implementation Regulations of the Enterprise Income Tax Law of the People's Republic of China". Formula: Annual depreciation amount = Original value ÷ Estimated useful life. "For transportation vehicles other than airplanes, trains, and ships, the period is 4 years". Formula: Calculate depreciation costs based on the vehicle's mileage, Depreciation cost = Original value (Miles driven / Estimated total mileage).