Holding period and annual (investment) returns. Bohenick Classic Automobiles restores and rebuilds old classic cars. Today at auction, the car sold for $69,300.00. What are the holding period returm and the annual return on this investment? The company purchased and restored a classic 1957 Thunderbird convertible 7 years ago for $7,700.00. What is the holding period return of the car? % (Round to two decimal places.)
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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