Accumulated Depreciation - Buildings Flashcards

1
Q

Fundamentals

A

Plant Asset - Contra, BS, credit

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2
Q

Computation of Annual Depreciation Expense

A

Straight Line: Cost - Salvage Value / Useful life (in years)

Declining Balance: BV at beg. of year x Declining balance rate (Dec. balance rate = 1 / useful life in years)

Units of Activity: Depreciable Cost / Useful life in units (Units of Activity during the Year)

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