Depreciation is calculated by using a method or division concept. The method used should most closly match the expected usage of the asset. Common methods include straight line, accerlerated, sum of the years digits, double accerlerated and utilization rates.
When it comes to depreciation, no two businesses are alike. Unlike traditional straight line depreciation where the asset value is cost out to depreciation expense in equal increments over a given life expectancy, accelerated depreciation […]