glasgowcyclist
Charming but somewhat feckless
- Location
- Scotland
True, I have without doubt substantially increased by coffee and cake in take over the last 12 months !You need to factor in the extortionate price some cafes charge for coffee with fancy names!!
It is. That's because the OP has used his purchase cost not the depreciation. Say the bike could be sold for half what it was when new, the correct sum would be46p a mile sounds a heck of a lot - but it assumes your bike has a value of £0 and has had no maintenance costs.
It is. That's because the OP has used his purchase cost not the depreciation. Say the bike could be sold for half what it was when new, the correct sum would be
(£1300-£650)/2800=£0.23 per mile.
This assumes no maintenance or overheads.
From an accountancy/stocktaking point of view how long does a bike take to depreciate to zero? Do you always count a resale value?
I would guess for push bikes the "reducing balance" method applies rather than the "straight line" method so the depreciation would be exponential thus the value will never reach zero. Eg £1000 bike worth 500 after a year, 250 after 2 years, 125 and so on. Then in 20 years it gets chucked in a skip as it's value is less than repair cost. This is just a wet finger in the air.From an accountancy/stocktaking point of view how long does a bike take to depreciate to zero? Do you always count a resale value?