Class 1-Fixed Asset ( Tax Depreciation )

Lesson Summary-Fixed Asset Class 1 under Cambodia Tax

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• -Fixed Asset for Class 1 included building and structures, warehouse.
• -Tax Depreciation rate is 5% ( 20 years).
• -Depreciation Expense is used straight line (SL) method.

Example 1

CBA Company has two buildings as follows:

• -Building 1 =$20,000 and Land 1= $70,000
• -Building 2 = $30,000 and Land 2=$80,000

Required:

Calculate Tax Depreciation Expense

Answer:

Land has no depreciation, tax deprecation expenses for building are as follows.

Depreciation for Class 1 =($20,000+$30,000) x 5%=$2,500

Example 2

ABC Company has the following fixed asset class 1 and expense.

• Warehouse for goods = $30,000
• Admin Building =$70,000
• Warehouse rental expense = $12,000

Required:

Calculate tax depreciation expense

Answer

warehouse rental is not depreciated, so depreciation expenses are as follows:

Depreciation expense for class 1 = ($30,000+$70,000) x 5%=$5,000