Accumulated Depreciation - Equipment

Question 1

Fundamentals

Answer 1

Plant Asset - Contra, BS, credit

Question 2

Computation of Annual Depreciation Expense

Answer 2

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)