L16_Accounting 1

L16_Accounting 1 - Lecture 16 Accounting I Depreciation ECE...

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Slide #1 ECE 4001 L17 T. Michaels © 2008 Lecture 16 Accounting I: Depreciation
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Slide #2 ECE 4001 L17 T. Michaels © 2008 Salvage Value Salvage Value = Estimated (actual) value of an item at the end of it’s useful life - Cost necessary to dispose of the item
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Slide #3 ECE 4001 L17 T. Michaels © 2008 Taxes Taxable Income = Total Income - Operating Expenses - Depreciation Depreciation is the decrease in “book” value of a capital equipment item and is deductible as a business expense. Value Market Value Book
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Slide #4 ECE 4001 L17 T. Michaels © 2008 Depreciation of Equipment Straight line Sum-of-years Digits Accelerated Cost Recovery System (ACRS) Modified Accelerated Cost Recovery System (MACRS)
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Slide #5 ECE 4001 L17 T. Michaels © 2008 Depreciation of Equipment When Salvage Value is Considered Total Depreciation = Purchase price - Salvage value Total depreciation amount Initial cost of capital equipment Salvage value D C S D C S = - = = =
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Slide #6 ECE 4001 L17 T. Michaels
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This note was uploaded on 04/09/2009 for the course ECE 4001 taught by Professor Frazier during the Spring '09 term at Georgia Tech.

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L16_Accounting 1 - Lecture 16 Accounting I Depreciation ECE...

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