Problem 9-4B Calculating depreciation-partial periods LO2, 3 eXcel CHECK FIGURES: 1B, 2025 Depreciation expense $53,200; 2A. 2025 Depreciation expense = $84,672 LiveReel Media purchased for $588,000 machinery having an estimated useful life of 10 years with an estimated residual value of $56,000. The company's year-end is December 31. Depreciation is calculated using the half-year rule. Required Complete the following schedules: 1. Assuming the purchase was made on January 1, 2023 2. Assuming the purchase was made on April 1. 2023 A. Double-declining balance method Machinery Less: Accumulated depreciation Year-end book value Depreciation expense for the year W B. Straight-line method Machinery Less: Accumulated depreciation Year-end book value Depreciation expense for the year 2023 |||| 2024 |||| ||||| 2025 =

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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.