FA 37 - Units of Production Depreciation Example

Module 8 examines the depreciation of capital assets. We learn to compute straight-line, units of production, and double declining balance depreciation. We also learn to sell assets at a gain or loss.

[vp]

Sorry Tony, I initially hit the dislike button by mistake, meant to hit the like button, have hit the like button now. Your videos are a life saver. Thank you!

[sagarkafaltiya]

Thanks for making this problem so easy for me.... Liked it... :)

[loicguignard]

So grateful for the help you give me! Thank you

[Kb]

So if time is not relevant for the units of production method, then aren't we technically calculating depreciation using this method for 6 years instead of 5? Since it doesn't matter whether it's a partial year or a full year?

[LenaSlavova]

Professor, what if we add a betterment to the asset? How do we recalculate? I saw an example but it made no sense.

[joycekhinkhin]

Professor, What if we are not given the salvage value then do we consider it zero?