depreciation memo

# depreciation memo - this's a depreciation memo in BA211.

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Junze, Zhou Chris Culver BA211 10/27/09 Depreciation Memo Straight-Line Method Explanation: Straight line depreciation charges the same amount of expense to each period of the asset’s useful life. Straight line depreciation is calculated by taking the purchasing or acquiring price of an asset subtracted by the salvage value, then divided by the total asset’s useful years. Depreciation for the period End of period Year Depreciable cost Depreciation rate Depreciatio n expense Accumulated Depreciation Book value 1 16,250 1/7 (14.3%) 2,321.43 2,321.43 15,928.57 2 16,250 1/7 2,321.43 4,642.86 13607.14 3 16,250 1/7 2,321.43 6,964,29 11285.71 4 16,250 1/7 2,321.43 9,285.72 8964.28 5 16,250 1/7 2,321.43 11,607.15 6642.85 6 16,250 1/7 2,321.43 13,928.58 4321.42 7 16,250 1/7 2,321.43 16250 2,000 Advantages: the simplest, most-often-used technique , easy understanding, simple and clear , easy to use Disadvantages: It is impractical depreciation method. It has a steady pattern of depreciation expense. But in our real life, the salvage value or the useful life’s

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depreciation memo - this's a depreciation memo in BA211.

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