chapter4-depreciation-examples

# chapter4-depreciation-examples - Farm Management Chapter 4...

This preview shows pages 1–8. Sign up to view the full content.

Farm Management Chapter 4 Depreciation Examples

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
farm management chapter 4 - examples 2 Straight Line Annual Depreciation = Cost – Salvage Value Useful Life Annual Depreciation = (Cost – Salvage Value) x R where R is found by dividing 100% by useful life Or
farm management chapter 4 - examples 3 Declining Balance Annual Depreciation = Beginning Year Book Value x R R is a constant percentage rate. Its value depends on useful life and the type of declining balance chosen. It is a multiple of the straight line rate.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
farm management chapter 4 - examples 4 Examples Calculate depreciation for a machine with a cost of \$10,000, a salvage value of \$2,000, and a useful life of 10 years.
farm management chapter 4 - examples 5 Using Straight Line Annual Depreciation = (\$10,000 – \$2,000) 10 = \$800 Annual depreciation will be the same every year under this method.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
farm management chapter 4 - examples 6 Using Double Declining Balance Year 1: \$10,000 x 20% = \$2,000 Year 2: \$ 8,000 x 20% = \$1,600 Year 3: \$ 6,400 x 20% = \$1,280 20% = 2 x 100% 10 useful life
farm management chapter 4 - examples 7

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern