Question 1

What is asset depreciation?

Accepted Answer

Depreciation is the systematic allocation of a fixed asset's cost over its useful life, reflecting wear, tear, or obsolescence.

Question 2

What depreciation methods are available?

Accepted Answer

The most common are straight-line (uniform distribution) and declining balance (higher depreciation in early years).

Question 3

What are Guatemala's depreciation rates?

Accepted Answer

Per ISR law: buildings 5%, machinery 20%, vehicles 20%, furniture 20%, computer equipment 33.33%, tools 25%.

Question 4

What is residual value?

Accepted Answer

It's the estimated value an asset will have at the end of its useful life, also called salvage or scrap value.

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