Carrying Amount Formula

Carrying Amount Formula

Carrying amount of an asset can be calculated by deducting accumulated depreciation from the cost.

Carrying Amount = Cost –Accumulated Depreciation

Example

Plant machinery = 100,000

Depreciation = 10,000

What would be carrying amount after two years?

Solution

Plant Cost                                            100,000

Accumulated Depreciation                       (20,000)

Carrying Amount                                    80,000