There are many ways to calculate depreciation, but it is best to choose a method that closely matches the expected utilization rate of the asset itself. Most assets are time based while others have a production expectancy. Consult your accountant for some guidance.
There are various forms of depreciation used in the small business world. In general, depreciation is not required but it is advisable. So a small business owner should understand depreciation and the various forms of […]
There are three methods of expensing an asset to the income statement. The most common method is depreciation for fixed assets. Mining, oil, and natural resource operations use depletion (amount removed versus the estimated volume on […]
The Internal Revenue Service sets the depreciation allowance based on the Code as promulgated by Congress. The most commonly referenced section is 179. This is a form of accelerated depreciation allowing the small business owner […]
In the world of accounting, there are two types of expenses on the reports widely misunderstood. They are depreciation and amortization. I will try to help the novice gain an understanding of depreciation in this […]