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  • ME 472 Class Notes

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    jaylondixon2
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    This document discusses 4 methods of depreciation: 1) Straight line, where depreciation is calculated evenly over the depreciable life. 2) Sum of the years digits, where depreciation is calculated based on a fraction of cost basis. 3) Declining balance, where annual depreciation is calculated as a percentage of book value. 4) Units of production, where depreciation deduction is calculated based on units produced in a year. Formulas are provided to calculate depreciation and book value under each method.

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    We’re going over Production Deprecation

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    This document discusses 4 methods of depreciation: 1) Straight line, where depreciation is calculated evenly over the depreciable life. 2) Sum of the years digits, where depreciation is calculated based on a fraction of cost basis. 3) Declining balance, where annual depreciation is calculated as a percentage of book value. 4) Units of production, where depreciation deduction is calculated based on units produced in a year. Formulas are provided to calculate depreciation and book value under each method.

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    © All Rights Reserved
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    4 views1 page

    ME 472 Class Notes

    Uploaded by

    jaylondixon2
    This document discusses 4 methods of depreciation: 1) Straight line, where depreciation is calculated evenly over the depreciable life. 2) Sum of the years digits, where depreciation is calculated based on a fraction of cost basis. 3) Declining balance, where annual depreciation is calculated as a percentage of book value. 4) Units of production, where depreciation deduction is calculated based on units produced in a year. Formulas are provided to calculate depreciation and book value under each method.

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    © All Rights Reserved
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    of 1

    New Chapter "Depreciation"

    4 Method

    1 .
    Straight line N =
    depreciable life
    2 . Lim of the
    years B = Cost basis
    3
    . Declining Balance de annual Deereciation
    4. Units of production Deduction in
    k <N
    year
    BVL =
    Book value at I
    year
    BVn :
    Salvage Value

    d =
    cumalitive
    de
    through year
    da :
    (B-BVn)
    N
    *
    dx =
    kda
    BVx =
    B-d

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