Depreciation, abbreviated as Dep, is the process of deducting the cost of a business asset over a long perion of time.
Depreciation - Straight-Line Method Formula |
| \( Dep \;=\; \dfrac{ AC - RV }{ ULA } \) |
| Symbol |
| \( Dep \) = depreciation |
| \( AC \) = asset cost |
| \( RV \) = residual value |
| \( ULA \) = useful life of asset |
Depreciation - Unit of Production Method Formula |
| \( Dep \;=\; \dfrac{ AC - RV }{ ULA } \cdot UP \) |
| Symbol |
| \( Dep \) = depreciation |
| \( AC \) = asset cost |
| \( RV \) = residual value |
| \( LTP \) = life-time production |
| \( UP \) = units produced |
Depreciation - Double Declining Balance Method Formula |
| \( Dep \;=\; \dfrac{ AC - AD }{ ULA } \) |
| Symbol |
| \( Dep \) = depreciation |
| \( AC \) = asset cost |
| \( AD \) = accumulated depreciation |
| \( ULA \) = useful life of asset |
