how to calculate monthly depreciation using the double declining depreciation method. Purchase Price: $3600 Useful life: 3 years Estimated residual value: $300 bought march 2 2019. need to calculate monthly depreciation expense for the year of 2019
Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
how to calculate monthly
Purchase Price: $3600
Useful life: 3 years
Estimated residual value: $300
bought march 2 2019. need to calculate monthly depreciation expense for the year of 2019
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