3 methods of depreciation
2. Units of production
3. Declining Balance
Straight-line depreciation formula
cost of asset - salvage value / useful life ( in years )
Book value formula
cost - accumulated depreciation
Units of Production are mostly used for?
equipment and machinery
Units of Production formula
cost of asset - salvage value / useful life ( in units of production)
first step to selling a fixed asset
Get the old asset off the books.
second step to selling a fixed asset
Debit Cash for any cash received
Third step to selling a fixed asset
Determine if there is a gain or a loss on the sale. (BV vs SP)
Gain on Sale of Fixed Asset
*Losses have credit balances
Gain on Sale of Fixed Asset has a normal...
Loss on Sale of Fixed Asset has a normal...
Natural resources are ______, not depreciated.
Natural Resources- depletion
* Use units of production depreciation method!
Intangible Assets are _________, and not depleted.
Intangible Assets - Amortization
The Relevant factors in computing depreciation include:
2. Salvage value
3. Useful life
4. Depreciation method
is the process of allocating to expense the cost of a plant asset
The total cost of an asset less its accumulated depreciation is called:
A method that allocates an equal portion of the total depreciable cost for a plant asset to each unit produced is called:
Units - of - production depreciation
is the systematic allocation of the cost of an intangible asset to expense over its estimated useful life.
Please allow access to your computer’s microphone to use Voice Recording.
We can’t access your microphone!
Click the icon above to update your browser permissions above and try again
Reload the page to try again!
Press Cmd-0 to reset your zoom
Press Ctrl-0 to reset your zoom
It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.
Your microphone is muted
For help fixing this issue, see this FAQ.