How to compute straight-line, double-declining balance,and units of production depreciation methods

May 5th, 2015
Studypool Tutor
Price: $5 USD

Tutor description

Understand how to compute straight-line, double-declining balance, and units of production depreciation methods and how a company choose the appropriate depreciation method. Also understand how they compare to one another over the course of an asset's life.

Word Count: 451
Showing Page: 1/3
Question : Understand how to compute straight line, double declining balance, and units of production depreciation and how a company chooses the appropriate depreciation method. Also understand how these depreciation methods compare to each other meaning how they compare to one another over the course of an assets life?Answer: Depreciation means the allocation of the cost of a plant asset to the periods in which services are received from the asset. For example, if a depreciable asset has a cost of $5,200, a residual value of $400, and an estimated useful life of four years. Straight-Line Depreciation Method: A method of depreciation which allocates the cost of an asset(minus residual value) equally to each year of its useful life. This method is cost appropriate when usage of an asset is fairly uniform from year to year. Cost of depreciable asse

Review from student

Studypool Student
" excellent work as always thanks for the help "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1826 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors