Depreciation - Straight Line and DDB

Depreciation straight line accounting matt fisher

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Education

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• VID00317

[PrincydudeAfnan]

Cool :)

[o07S]

@pirsheikh journal entry

new a/s Dr disposal a/c Cr

[AhYaOk]

@kkjhhkjhkj the original account would be a cash credit and a equipment debit. it wouldnt be considered an expense until the end of the year through the depreciation, which is why the original equipment account goes down in value. its should be fairly expenced, so not illegal.

[pirsheikh]

Can you please show disposal off a fixed asset by part exchange and recording it on the fixed assets register

[CamVrablic]

5:34 for Double Declining Method

[kkjhhkjhkj]

Under accrual accounting, which GAAP requires, under the expense account, don't you have to record the original entry at 65000 because that is the value that accrues when the original transaction takes place (unless you finance it with a car loan)? I understand your method for the depreciation on the balance sheet. But for the income statement, I am just curious because you said subtract 12k of expenses every year on the income statement. That today would be illegal right?

[Dragoneyes495]

Good example, I was getting confused by my textbook if salvage value is included in the Double Declining rate. Your video cleared that up, thanks so much. Oh and that better be a nice truck for 65k! :D

[netbasis]

Thanks for posting Matt. Not sure how you're doing cost basis analysis, but we offer CPA's a cost basis calculator at Net Basis.

[MZH90]

thanks that's really helpful!

[paradiselostinme]

Awesome

thnks a lot!!!

i have this topic to teach tommorow :D

found it too helpful

thnks again