## Depreciation

Depreciation is the expense associated with the regular use or wear and tear of assets. Common methods of computing depreciation are straight-line, sum of the years, units-of-production and double declining method.

Original cost of the asset is computed as follows:

 Selling price $168,000 Less: Gain on sale 5,921 Carrying value at date of sale 162,079 Add: Accumulated depreciation 57,511 Original cost of the asset$219,590