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video example of the straight line method being worked

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video example of the straight line method being worked

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How to Calculate Straight Line Depreciation Method

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attempts to distribute the same amount of expenses to each period of time

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example problem of the straight line method 

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example problem of the straight line method 

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Modified Accelerated Cost Recovery System (MACRS)

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Modified Accelerated Cost Recovery System (MACRS)

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depreciation for tax reasons, result of the tax reform act of 1986

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In a systematic and logical way, companies must estimate the asset cost they show as an expense of a particular period.

(decrease in value over time)

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video example of depreciation expense being worked

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video example of depreciation expense being worked

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Accounting for beginners #8 /  Depreciation Expense / Basics

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shows the unused amount of the asset cost that the company may depreciate in future accounting periods. At the end of the asset's life, the asset's book value is the same as its residual value
*can't be less than residual value

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expected cash value at the end of the asset's useful life
(probably pretty low)

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number of years or time periods for which the company can use the asset
(when it should be replaced/ no longer valuable)

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amount the company paid for the asset including freight and charges relating to the asset