Accelerated depreciation is a method of depreciation that charges higher depreciation on an asset in earlier years. The rate of depreciation is faster as compared to straight-line depreciation in the first year and gradually reduces.
Assume a building has a cost of $500,000 and a useful life of 5 years with a salvage value of $50,000. The straight-line depreciation will be $90,000 per year, i.e. (500000-50000)/5. If the depreciation is charged on an accelerated depreciation method, like the double-declining method, the depreciation will be charged at twice the rate of straight-line depreciation, i.e. (1/5 = 20% x 2 = 40%) This way the depreciation in the first year will be ($500,000-$50,000) x 40% = $180,000.
At the beginning of the year, Patrick Company acquired a computer
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Listed below are 10 causes of temporary differences. For each temporary
Listed below are 10 causes of temporary differences. For each temporary
Ray Solutions decided to make the following changes in its accounting policies
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The frame-welding department of a large automotive company welds car
Briefly differentiate between the straight-line depreciation method and accelerated depreciation
Assume that a company chooses an accelerated method of calculating depreciation expense
Target Corporation operates in a single business segment that is designed to