Purchase at time 0 of a piece of widget processing equipment for The equipment is assumed to have a 7-year economic life. The assumed salvage value for the widget equipment at the end The equipment is expected to produce 35,000 widgets over its ec Actual annual production of widgets is 3,450 in year 1, 5,200 in y each in years 4-6 and 4,900 in year 7. Assume for the declining balance method that you will apply a do approach. Use an Excel spreadsheet to create a table similar to the one sho spreadsheet, using the assumptions listed above, calculate the a the wid aet pro cessing eguin ment using each of the four methods
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.

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