Does a fixed asset have its depreciation rate reciprocal to the estimated life of that asset…..?
Yes, a fixed asset can have its depreciation rate which is reciprocal to the estimated life of an asset in years if the scrap value or the value at the end of estimated useful life is nil. But this is true only in case where straight line method or fixed installment method is used. However, in the Indian context the rate of depreciation is either decided by the Income Tax Act or the Compaines Act for all practical cases.
