The Class Life or Useful Life of a fixed asset is the number of years over which an asset can be depreciated. Class life is determined by tax law which defines a specific number of years to each type...
Category: Accounting Basics
A Depreciation Schedule is a listing of every Fixed Asset a company owns. It includes the following for each asset: Asset Name (2015 Ford F150, Hobart Mixer, Hyster Forklift)Any identifying...
Sum of the Years Digits is an accelerated depreciation method, meaning more depreciation is expensed in the early years of the class life of an asset. To calculate depreciation using this method,...
How to Calculate Units of Activity or Units of Production Depreciation
Units of Activity or Units of Production depreciation method is calculated using units of use for an asset. Those units may be based on mileage, hours, or output specific to that asset. For...
Declining Balance Depreciation is an accelerated cost recovery (expensing) of an asset that expenses higher amounts at the start of an assets life and declining amounts as the class life passes. The...
Generally Accepted Accounting Principles (GAAP) is a set of Assumptions, Principles, and Constraints put in place by the Financial Accounting Standards Board (FASB). The goal of GAAP is to provide...
