Depreciation Homework Help

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Relation between fixed assets and depreciation

 
Any fixed asset has certain value and when that value starts to decrease with due course o time, it is called as depreciation in the value of asset. This depreciation goes on until the net value of the asset is zero or negligible. In depreciation homework help you may find various examples like office furniture, buildings, machinery etc. as an example of fixed assets.
A value of the fixed cost is responsible for the generation for revenue of the company by using that fixed asset. A land cannot be considered under fixed asset as its value will elevate with time.
 

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Methods to calculate depreciation

 
Our depreciation homework help article writers have highlighted the following points related to the methods of calculating depreciation from the fixed assets.
 
1. Straight line method says
Annual Depreciation expense = (Asset cost – Residual cost) / life span of the used asset
 
2. Unit of production method says
Depreciation/unit = (Asset cost – Residual cost) / life of an asset used in production unit
 
3. Double declining balance method says
Depreciation = 2 * percentage of straight line depreciation * book value at the initial stage of accounting period
 

Inputs for depreciation accounting

 
As our depreciation homework help experts suggest, the following three are the most important factors taken for calculating depreciation
 
• The useful life span of the fixed asset
• The salvage value at which the used asset is sold to others
• Depreciation method which identifies the more value of life before the usage of fixed asset.
 
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