Approved. For every following year, you'll use the amount you enter into the ending book value column for the preceding year. Companies should assess if an impairment is, Investment banking is the division of a bank or financial institution that serves governments, corporations, and institutions by providing underwriting (capital raising) and mergers and acquisitions (M&A) advisory services. These assets play a key part in the financial planning and analysis of a company’s operations and future expenditures, less the accumulated depreciation. Calculate Depreciable Cost: purchase price - salvage value. {"smallUrl":"https:\/\/www.wikihow.com\/images\/thumb\/f\/f1\/Calculate-Depreciation-on-Fixed-Assets-Step-1-Version-4.jpg\/v4-460px-Calculate-Depreciation-on-Fixed-Assets-Step-1-Version-4.jpg","bigUrl":"\/images\/thumb\/f\/f1\/Calculate-Depreciation-on-Fixed-Assets-Step-1-Version-4.jpg\/aid1410799-v4-728px-Calculate-Depreciation-on-Fixed-Assets-Step-1-Version-4.jpg","smallWidth":460,"smallHeight":345,"bigWidth":"728","bigHeight":"546","licensing":"