Understanding Depreciation Methods: Straight Line, Units of

School: Liberty University - Course: ACCT 211 - Subject: Accounting

SalesEquipment300,000 -COGSCash GP -Expense 300,000minus Net Income10 years Lumper method Appraisal% of AppraisalAllocation/Appotionment Building35000050% $250,000 Land25000036% $178,571 Equipment10000014% $71,429 Tot. Appraisal700000100% $500,000 Purchase Price$500,000 1- straight line formulaEX Costminussalvage value Equipment Useful LifeSalvage Value Useful Life Depreciation Expense Accumulated Depreciation 2- units 0f Production cost - Salvage/Total units that I can produce Equipment300000 Salvage Value10000 Useful Life10 years Total Units prod1000000 Depr/ unit0.291/31/2022 Depr Expense29000

Accumulated Depr January Product100000 Feb Production750002/28/2022 Depr Expense21750 Accumulated Depr Total units1000000 Jan100000 Feb75000 825000 3- Double Declining BalanceStraight line20% Double it40% Equipment300000 Salvage Value10000 Useful Life5 years Cost/Book valueDeprAccumulated DeprBook Value year 1300000120000120000180000 year 218000072000192000-12000 year 30 year 40 year 5

Equipment300,000 300,000Accumulated depretiation29,000 Equipment net271000 10,000 = 29,000 EX from prof Appraisal% of Appraisal Purchase Price650000Vehicles8500010% Equipmetn25000030% Building49500060% Tot. appraisa830000100% annual deppreciation 30000029000 acummulated depreciation29000 100002416.6666667 monthly depreciation29000 10 years Year 1Year 2 29000depr Exp2900029000 29000Acc Depr29000

29000 21750