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Depreciation of Assets

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					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.
                        Microsoft ClipArt Gallery
Depreciation


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