You have to debate or agree but if you agree you have to add to it like 8 or more sentences to both its two different people depreciation is meant to show what the asset costs once it has been shown on the ledger, “depreciation is the process of allocating an asset’s cost to all accounting periods benefited by the assets use.” (walther, 2012) the best method of depreciation would be the straight line method, its depreciation is charged annually by dividing the depreciation base by the service life, it is spread over the service life and each equal amount of depreciation is given a time frame.

Depreciation is the process of configuring the cost of an item to all accounting periods that is aided by the items use. Depending on the type of equipment the client purchased for $100,000.00 would determine which depreciation method i would use. For this example i chose to have the equipment be a car, and also decided to use the straight-line method to easily explain the way depreciation works to the client. I chose to have the car loan be 6 years long allowing for me to configure part of how the percentage is determined. I also looked up the standard years of usefulness, 20, to have the other part of the percentage. I then use the formula (cost of car-salvage value)/20. The cost of the car would be $100,000.00 and the salvage value could be $5,000. ($100,000.00 - $5,000.00) / 20 = $4,750.00 ( this is the amount that will be taken out annually each accounting period.

Give your response:

Answer rating: 100% (QA)

Yes I agree with the views of the walther regarding depreciation as a method of allocating the cost ... View the full answer