An asset valuation question

Two types of devaluation appear in this question, repairability and irreparability.

The physical depreciation of assets is also tangible loss. Substantive depreciation will compound repairable depreciation and irreparable depreciation.

Irreparable loss or depreciation = (replacement cost - repair cost)/total service life × actual service life

Full replacement price: 1.6 million yuan

Depreciation caused by repairable loss: 165,000 yuan

Depreciation caused by irreparable loss: that is, irreparable depreciation based on wear and tear due to service life.

(160-16.5)/25×5=28.7 (10,000 yuan)

Substantial depreciation: 452,000 yuan

Depreciation rate: 45.2/160= 28.25%