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Let’s go over Depreciation

Let’s go over Depreciation. b efore the test on. Depreciation. The cost of the non current asset less how much we think we will sell it ÷ how long we will have it. Cost less Sale Value Useful life. Restoration Doors purchased a new photocopier $6000 to be sold for $300 in 4 year.

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Let’s go over Depreciation

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  1. Let’s go over Depreciation before the test on

  2. Depreciation • The cost of the non current asset less how much we think we will sell it ÷ how long we will have it. Cost less Sale Value Useful life

  3. Restoration Doors purchased a new photocopier $6000 to be sold for $300 in 4 year Cost less Sales value Useful life 6000 – 300 4 = $1425 Depreciation Expense per year

  4. Reporting Depreciation Expense

  5. Accumulated Depreciation • Every year that a business owns a Non Current Asset, the Depreciation Expense is added together (or Accumulated). • This is to estimate how much the Non Current Asset has worn out over its useful life.

  6. Reporting Accumulated Depreciation

  7. Reporting Accumulated Depreciation after 2 years

  8. Reporting Accumulated Depreciation after 3 years

  9. Calculating Accumulated Depreciation

  10. Make sure you have completed • All the Depreciation Exercises • Topline, CBD, P. Doyle • Handed in the Dell Luggage Exercise (which is a photocopy and not on the computer). • Completed your Depreciation Homework K. Harrison and handed it in. • Have some notes to take home to study before you do the Depreciation Test.

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