Depreciation of Assets

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Presentation transcript:

Depreciation of Assets Ag I Class

What is Depreciation? It is a method of how assets lose their value. It is considered a NON- CASH business expense.

Depreciation Schedule is a recording of the assets history that will allow its true market value to be known.

How is depreciation determined? yearly depreciation = purchase price - salvage value years of useful life

Purchase price How much we paid for the asset. Can be either new or used.

Salvage Value How much you think the asset will be worth when you are done with it.

Years of Useful Life How many years you plan on using this asset.

Depreciation the end