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# ACCOUNTING DEPRECIATION QUESTION, URGENT HELP NEEDED!

Calculating Depreciation

COST:150,000
SALVAGE VALUE: 12,000
LIFE: 5 YEARS
UNITS OF OUTPUT: 138,000

UNITS OF OUTPUT IN YEARS 1-5
YEAR 1: 60,000
YEAR 2: 50,000
YEAR 3: 20,000
YEAR 4: 5,000
YEAR 5: 3,000

I NEED TO KNOW STRAIGHT LINE DEPRECIATION, UNITS OF OUTPUT, AND DOUBLE DECLINING BALANCE. IN ALL THREE FORMS, I NEED THE CALCULATIONS, ANNUAL DEPRECIATION, ACCUMULATED DEPRECIATION, AND BOOK VALUE FOR YEARS 1-5. THIS IS TO BE INPUTTED INTO AN EXCEL SHEET.

I AM REALLY IN NEED OF AN ANSWER BECAUSE I NEED TO USE THIS AS AN EXAMPLE TO TEACH MYSELF SO I CAN DO THE ACTUAL WORK TONIGHT. PLEASE HELP!

### 1 Answer by Expert Tutors

Alan B. | Be Successful in Microsoft Office, Personal Finance, Business, or GolfBe Successful in Microsoft Office, Perso...
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Straight Line Depreciation = Cost - Salvage divided by years of useful life. In this example \$150,000 -12,000 = 138,000 / 5 is \$27,600

Double Declining Balance Depreciation = Cost x Straight Line percent times 2 x Book value (beginning of each yr). In this example, Cost \$150,000 x (SL of 20% x 2) or 40% is \$60,000.

Units of Output Depreciation = Cost - Salvage divided by TOTAL units produced x number of units/year. In this example, \$150,000-12,000=138,000 / 138,000 units = \$1.00 worth of depreciation per unit. So year 1 depreciation is \$1.00 / unit x 60,000 units produced = \$60,000.

Accumluated depreciation would be to add each years depreciation together.

Book Value would be Starting cost \$150,000 - yr 1 depreciation (whichever method used) = Book Value end of year one and beginning Book Value yr 2 and so on.

The definitions and calcuations can be obtained on an internet search as well.

Hope this helps.