About This Chapter
Depreciation & Salvage Values - Chapter Summary and Learning Objectives
Various types of math applications are used in business, and calculations for depreciation are among them. In this chapter, well-informed instructors will walk you through several methods of depreciation, in addition to a variety of accelerated depreciation methods. At the end of this chapter, you should be well-acquainted with topics like:
- Steps for computing and recording depreciation
- Ways to report depreciation on balance sheets
- Computations of depreciation for partial years
|Methods of Depreciation||Show how to compute and record methods of depreciation, such as units-of-production, straight-line and double declining-balance.|
|Partial-Year Depreciation & Changes in Estimates||Discuss depreciation for partial years and the changes in estimates that would occur.|
|Reporting Depreciation on the Balance Sheet||Outline how depreciation of a plant asset would be reported on the balance sheet.|
|Accelerated Depreciation Methods||Explain methods of accelerated depreciation like sum-of-the-year's-digits and declining-balance.|
1. Methods of Depreciation
After watching this video lesson, you will understand the differences between the different depreciation methods that are available to you. We will discuss three different methods depending on how you use the equipment that you want to calculate the depreciation for.
2. Partial-Year Depreciation & Changes in Estimates
This video lesson will teach you about depreciation calculations for taxes and how to calculate partial-year depreciation for large items that you own for just part of the year. Learn how changes in estimates may affect these calculations.
3. Reporting Depreciation on the Balance Sheet
In this video lesson, we talk about how to report depreciation on the balance sheet versus the income statement. Learn why the numbers may be different.
4. Accelerated Depreciation Methods
When it comes to calculating depreciation amounts for large office equipment or vehicles, there are two common methods that allow you to calculate more depreciation in the first few years of the product's life. Learn about them in this video lesson.
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