Prepare the depreciation schedule, using the declining-balance (twice the straight-line rate). (Input all amounts as positive values. Leave no cells blank - be certain to enter "0" wherever required.) Chevrolet Colorado $ 25,000 Residual value $ 5,000 Estimated life 5 years End of year Cost of Colorado Accumulated depreciation at beginning of year Book value at beginning of year Depreciation expense for year Accumulated depreciation at end of year Book value at end of year 1 2 3 4
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.
Prepare the
| Chevrolet Colorado | $ | 25,000 |
| Residual value | $ | 5,000 |
| Estimated life | 5 years | |
|
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