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Depreciation

Depreciation. Is depreciation a revenue or expense? What types of items get depreciated? L Depreciation A Why depreciate something?. Depreciation. To calculate depreciation, you need to know: The asset’s original The asset’s The asset’s

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Depreciation

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  1. Depreciation • Is depreciation a revenue or expense? • What types of items get depreciated? • L • Depreciation • A • Why depreciate something?

  2. Depreciation • To calculate depreciation, you need to know: • The asset’s original • The asset’s • The asset’s • The rate at which the asset is depreciated over time • Straight-Line depreciation • Asset depreciates until it reaches its salvage value • Declining balance depreciation • Asset depreciates until it reaches its salvage value. • This method : more depreciation occurs earlier in the asset’s life

  3. See page 486 Calculating Depreciation

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