FA 37 - Units of Production Depreciation Example

[@vp4020]

Sorry Tony , I initially hit the dislike button by mistake, meant to hit the like button, have hit the like button now. Your videos are a life saver. Thank you!

[@loicguignard8818]

So grateful for the help you give me! Thank you

[@sagarkafaltiya4735]

Thanks for making this problem so easy for me.... Liked it... :)

[@LenaSlavova]

Professor, what if we add a betterment to the asset? How do we recalculate? I saw an example but it made no sense.

[@Tony-Bell]

Hi Lena - sorry - I don't teach Intermediate Accounting, so I'm not too sure about that topic!

[@troyster28]

Tony whats good my g

[@K83b2]

So if time is not relevant for the units of production method, then aren't we technically calculating depreciation using this method for 6 years instead of 5? Since it doesn't matter whether it's a partial year or a full year?

[@Tony-Bell]

Not really - you need to take the time element out of your mind completely. The only thing that matters is the Units - so if it takes 20 years to get to the units, so be it. If it takes 4 years to get there, so be it. The time is not even considered.

[@joycekhin91khin59]

Professor, What if we are not given the salvage value then do we consider it zero?

[@sharansalwahan901]

Thnk u so much sir