Depreciation Methods (Straight Line, Sum Of Years Digits, Declining Balance Calculations)

Accounting for depreciation with the straight line method, sum of years digits method and declining balance method, example shows how to calaculate depreciation expense using each of these methods, for (1) straight line method calculate the full year based on (1/1) fiscal year determine the depreciation charge (cost minus salvage value divided by service life equals the depreciation charge per period, with straight line depreciation, depreciation expense is a function of time rather than a function of usage, (2) sum of years digit method calculate the depreciation fraction as the sum of years for the depreciation period or as the equation (n(n+1)/2 = sum of years), use the sum of years as the denominator dividing it into the remaining life and multiplying the fractional amount times the depreciation base equals the depreciation for the period, (3) using the declining balance method do not deduct the salvage value from the cost for computing the depreciation base, the depreciation rate is based on a percentage (multiple) of the straight line depreciation rate, double declining balance would be two times the straight line depreciation rate, depreciation expense for the period is calculated by multiplying the declining balance rate times the book value (carrying value) for the asset for each period, detailed calculations by Allen Mursau

[@brandongrupe7442]

Someone needs a tissue.

[@chef-malumcastroes]

Equipment was purchased for R460, 000 with an estimated life of 10 years and a residual value of R19, 000. What is the depreciation expense for the first 5 years using each of the following separate depreciation methods? a. Double-declining balance (15) b. Sum of the years’ digits this one is different please help

[@andrewagyeman3338]

lol

[@monicashanelucero3305]

What if ?? Cost Salvage. Life in Year Building 6,100,000. 100,000 20 yrs Machinery 2,550,000 50,000 5 yrs Equipment 1,030,000 30,000 10 yrs Accumulated Depreciation April 1,2017 Depreciation Cost for each asset Annual Depreciation for each asset WHATS THE ANSWER

[@hamidawais3662]

In declining depreciation method , last year depreciation should be adjustable due to rule , cost minus salvage value 30400-16000 = 288000 At the end of year 7 accumulated depreciation is 263412 - 288000 = 24588 is the adjustable depreciation

[@SHALASHY]

Finally i got to understand Depreciation easily thanks to your explanation. Great work.

[@mikechipeta9810]

I don't understand where to get the 25%rate may you elaborate

[@cutelurker1981]

me, omw to take the accounting final tomorrow:

[@kiruhailu]

the purchase date is 10/1/20xx wouldnt that affect the depreciation expense for that year?

[@sreytouchkong8838]

I would like to say hello 🙏🙏 Teacher, I would like to ask a few questions related to the depreciation of Assets 1 / In case the company has bought a machine worth $ 3000 to use in the company, how does the company depreciate? Right? If we depreciate, set the machine life of 5 years 3000 $ / 5 years / 12 months = 50 $, the period of using the machine is 1 month and until the service life is still usable, do the companies stop depreciating? What if the machine is damaged during the demolition? 2 / A company bought a lot of machines to use in the business, but for many years, the company did not depreciate, and the company also began to depreciate during the non-depreciation, many machines repaired many messages. How many times do you make a depreciation without knowing the purchase life or price and overdue for many years by estimating the price?

[@김준수-y7k]

A perfect lecture better than the fat and lazy lecturer in my college

[@andrewagyeman3338]

🤣🤣🤣🤣

[@djwhitt7]

Awesome, thank you. Much better than the text book.

[@glennporter6378]

Debbie Jean Whittington You are so right! I learn so much more here on KZbin than any textbook

[@chef-malumcastroes]

Hy sir can I ask a question

[@djwhitt7]

What if you plan to purchase 5 of the product but only one per year with 4 years depreciation each, and factor in all purchases within 8 years?

[@joyrutherford4899]

This video is very educational, it was easy to understand, it helped cleared up the depreciation methods. Thank you

[@reyhanrezaei8468]

thanks alot. very good explaining. but the i keep losing concentration on the video because the voice record was not so good. abit annoying. sorry .

[@trishalee992]

Thanks, this is the easiest and most self explanatory one I have seen dust far.

[@daanthekhan481]

*thus

[@mwitawanyancha9968]

thank you very much...everywhere i searched it was very complex...this really helped me a lot. using ur method i got A+. god bless you dude.

[@ifazarifah6992]

how about declining balance which is not double? we just have to find straight line rate only?

[@pawasutsassawira9901]

Thank you so much 😁 This video can make me understand moreover, when i want to doing by myself. Thanks

[@lisro21]

Your videos are simple to follow. I can't say that for my textbook.

[@au10666]

what if it just says P.a ? per annum

[@mbwatiishakuduna1902]

Thank you

[@오잉-p3h2y]

thanks alot! have an exam in 2 days, your vid saved me 😭

[@lizyolanfred7227]

I understood every part clearly,thanks to Mr.Allen Mursau

[@cincosentidostex-mexrestau4684]

Great, thank you. The more confusing thing is when items are purchased in different months of the year as opposed to the beginning of the year.

[@shwetanandeshwar1997]

its very helpful every one must see it so that their ideas get more clear

[@fairahmajeed4282]

Love u mam

[@122334499able]

thank you, your video was helping us, please can i have more information about depreciation

[@katrusrock]

Hi..thanks for the video...now I got it...please can I suggest some topics ...?

[@vivianebigras8120]

Thank you, Allen, you are so helpful, I could understand so easy then my books.

[@SuperJray16]

when he refers to the Sum Of Years Digits method does he meanthe Units-of-activity method

[@kaysha-leeknight6461]

SuperJray16 yeah

[@mohamedabdelgawad7147]

super explain .. thank you so much

[@nylux28]

Oh wow...I understand this!

[@surbhibhatnagar8270]

thank you so much.. your lectures are really helpful

[@SpacemaanRacing]

Thank you, helped me learn all three methods in minutes.

[@RamPMonyPers]

Very good, easy-to-understand instructional video. Thank You!

[@bluebird5352]

thankyou so much. really helped :)

[@zvidzaimaunga4799]

much understandable. thank you.

[@lizyolanfred7227]

perfect video,straight to the point.....wow

[@jihane0jihane]

I undrestund now the depreciation thank u a lot

[@sahardababseh4772]

Thank u .. Superrrrr explain

[@1cabaretsolstice]

When I do my fractions based on 5 year depreciation they come out with odd fractions that do not look like those in the video. However, the final numbers look right. Any suggestions?

[@harit7421]

That's right. They don't have to look like those in the video. As long as the final numbers are correct.

[@phanymaimai9820]

Thank for this video

[@NJOPRINK]

just straight to the point, thank you so much

[@ayalizm7323]

Thank you soo much

[@lilysa15]

Thank you ,this is very helpful

[@justinmir930]

great video , thank you!

[@kamranali2542]

Appreciated (y)

[@mentseekhang9019]

how can we say that salvege value is 16000

[@getalifewithche17]

That was given.

[@norbertosalinas7686]

very helpful!!! thank you

[@1cabaretsolstice]

Very good video tutorial.

[@akbeastvijayfan]

Thanks a lot!

[@instaminox]

Thanks a lot !

[@duaibrahim8020]

thanks dear

[@daviddebaggis498]

THANKS!

[@dojanet6816]

Great video!

[@dojanet6816]

Thank you so much!