Depreciation and its Method Homework Help
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What is depreciation?
Due to maximum usage of an asset in its financial period, its value starts to decrease with due course of time. This is called as depreciation. In this depreciation and its method homework help article the following examples like buildings, furniture, office equipments etc. can be termed under the assets whose value decrease with time.
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Types or methods of depreciation
The following explanations for various types of depreciations are compiled by our depreciation and its method homework help article experts.
1. Straight line depreciation: it is done by taking the purchase price of an asset, and subtracting it with an approximate cost at which the company can sell it after use divided by the total number of years that asset can serve the company beneficially.
2. Unit of production depreciation: fixed rate per unit of production is the basic of this method. The cost per one production is needed to be determined and then it is multiplied with the total number of units the company produced. Our depreciation and its method homework help article writers suggest that this method is helpful in finding depreciation expense.
3. Hours of service depreciation: the depreciation expense is supposed to be the function of total number of hours it has served in an accounting span.
4. Accelerated depreciation: companies that have huge tax burden usually utilize this method. If any equipment becomes obsolete, this method is used to write off the equipment for replacement purpose.
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