DIRTI 5.docx - Hannah Campbell Economic Principles Concepts Journal Title DIRTI 5 Due Date Date Submitted The DIRTI 5 is what an enterprise or company

DIRTI 5.docx - Hannah Campbell Economic Principles Concepts...

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Hannah Campbell Economic Principles & Concepts Journal Title: DIRTI 5 Due Date: February 24, 2019 Date Submitted: February 24, 2019
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The DIRTI 5 is what an enterprise or company takes into consideration while having the company. DIRTI 5 stands for Depreciation, Interest, Fixed Repairs, Property Taxes, and Insurance. Depreciation: is the reduction of recorded cost of a fixed asset until the asset has a value of zero. o When calculating depreciation, the inputs are required which are useful life, salvage value, and cost of the asset. o There are also three different methods that are used to calculate depreciation which are the straight-line method, unit of production method, and double- declining balance method. Interest: is a payment made to a lender for money that was borrowed. The amount paid back is
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