Depreciation Methods: Straight Line, Units of Activity,

Chapter 10 Depreciation Methods Straight Line Method: Cost−Salvage Vaue=DepreciableCost DepreciableCost ÷UsefulLife(¿years)=Annual Depreciable Expense Units of Activity Method: DepreciableCost ÷TotalUnits of Activity=Depreciable Expense DepreciabeCost per Unit ×Unitsof Activity DuringtheYear=Annual Depreciable Expense Declining Balance Method: Book Value at Beginning of Year × DecliningBalance Rate=Annual Depreciation Expense Revised Depreciation : 1)Calculate new depreciable cost 2)Divide new depreciable cost by new remaining life Depletion Cost per Unit: TotalCost−SalvageValue Total EstimatedUnits Available =DepletionCost per Unit Asset Turnover: Net Sales÷ AverageTotal Assets=Asset Turnover or Net Sales÷Beginning Assets+Ending Assets 2 =AssetTurnover