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Business Definition for: depreciation methods
depreciation methods
accounting techniques for allocating the cost of an asset over its
useful life
.
Example: $1,000 asset, four-year life:
| Annual Depreciation | |||
| Year | Straight-Line | Double-Declining- Balance |
Sum-of-the-Years'- Digits |
| 1 | $250 | $500 | $400 |
| 2 | 250 | 250 | 300 |
| 3 | 250 | 125 | 200 |
| 4 | 250 | 62 | 100 |
depreciation methods
accounting technique of allocating the cost of an asset over its useful life .
Example: Table 16 is a depreciation schedule for a $1,000 asset with a depreciable life of 4 years, using 3 methods.
| TABLE 16 DEPRECIATION METHODS |
|||
| Annual Depreciation | |||
| Year | Straight Line | Double Declining Balance |
Sum-of-Years-Digits |
| 1 | $250 | $500 | $400 |
| 2 | 250 | 250 | 300 |
| 3 | 250 | 125 | 200 |
| 4 | 250 | 62 | 100 |
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
