Business Administration

Tag: MACRS

Bookkeeping – Depreciation Schedules (Lesson 51)

Mar 19, 2017

—

by

David J Hoare MSA

in Bookkeeping – Regular Business Activity

When a small business purchases fixed assets two financially based opposing forces come into play. The first is the financial reporting desire to present information in a fair manner so management can make good financial decisions. The opposing force has to do with taxation.
Accelerated Depreciation – An Explanation

Dec 17, 2013

—

by

David J Hoare MSA

in Report Analysis – How to Read the Statements

Unlike traditional straight line depreciation where the asset value is costed out to depreciation expense in equal increments over a given life expectancy, accelerated depreciation expenses the cost at higher values during the earlier accounting periods and at a lower amount towards the last half of the asset’s life expectancy.