This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: Estimated service life Advantages 1) Simple 2) Most conceptually appropriate Disadv antages 2 tenuous assumptions: 1) The assets economic usefulness is the same each year 2) The repair and maintenance expense is essentially the same each period c. Decreasing-Charge Methods provide a higher depreciation cost in the earlier years and lower charges in later periods (Accelerated Depreciation Methods) c.i. Sum-of-the-years digits results in a decreasing depreciation charge based on a decreasing fraction of depreciable cost (original cost salvage value) c.ii. Declining-Balance utilizes a depreciation rate that is some multiple of the straight-line method d. Group/Composite Method...
View Full Document