What Is Calculation Method

Depreciation is a method for spreading out deductions for a long-term business asset over several years. The basic way to calculate depreciation is to take the cost of the asset minus any salvage value over its useful life.

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Table 5 providesa method comparable to the federalalternative method forpercentage calculation of withholdingThis method is a minor simplification ofthe exact calculation method described above in that the taxrate appliesto the total taxable income with the excessamount subtracted.

What is calculation method. Depreciation is handled differently for accounting and tax purposes but the basic calculation is the same. Eddcagov 40 Taxpayer Assistance Center 1-888-745-3886 INTERNET.

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