What is the depreciation period for passenger cars?
1 Answers
The depreciation period for passenger cars is four years. Below are the details regarding car depreciation: 1. Definition: Car depreciation falls under fixed asset depreciation. Fixed asset depreciation refers to the depreciation extracted according to the prescribed fixed asset depreciation rate over a certain period to compensate for the wear and tear of fixed assets, reflecting the transfer value of fixed assets in current production. 2. Notes: The adjustment method for vehicle depreciation expense is to replace the financial depreciation expense of the vehicle with the capital recovery cost of the vehicle. The vehicle capital recovery cost equals the economic price of the car multiplied by the annual capital recovery coefficient, then divided by the average annual transport turnover per vehicle.