Module 9.04- Study Units of Production the third method. Depreciation is based on number of units of estimated use over the useful life of the asset. Study the Canvas explanation if you do not understand the textbook.

Straight Line Depreciation Model 4.04 Problem Straight Line Depreciation Truck Acquisition Cost $13,000 Salvage Value $1,000 (do not depreciate below SV Useful life 5 years or 100,000 miles Placed in Service 1/1/Yr1 Depreciable Cost = Capitalized Cost - Salvage Value MODELA: Placed Service Wyp 1: Capitalized Cost Book Value): SAL Depreciable Dopr Deor Accum. Romaining START 13.000 Yeer cost basis rate expense depr book value 1 12 000 20% 2.400 2.400 10,600 2 12.000 20% 2 400 4,800 8.2001 3 12,000 20% 2,400 7,200 5,800 4 12.000 20% 2.400 9.600 3.400 5 12,000 20% 2.400 12,000 1.000 =SV MOOB! Place in Service 4/11 other than 1/1Yr1 requires proration Capitalized Cost Book Value): SR Depreciable Depr Depr Accum Remaining START 1.000 Ver cost basis mto expense depr book value 1 12.000 15%(0) 1,800 1.800 11 200 2 12.000 20% 2.400 4,200 8.800 3 12,000 20% 2.400 6.600 6.400 12.000 20% 2.400 9.000 4,000 5 12.000 20% 2.400 11.400 1,600 e 12.000 542) 6001 12,000 1.000 -SV (1) 20% x 9/12 -15% 12) 20% 3/125% (9 months in first year) (3 months in year six to complete 12 months) Depreciation 904 Double Decline Model Problem Double Declining Balance 200% Truck Acquisition cost $13,000 Salvage Value $1,000 (do not depreciate below SV) Useful life 5 years or 100,000 miles Placed in Service 1/1/Yr1 Depreciable Cost = Capitalized Cost MODELC: Placed in Service: ilyril (CC) Capitlaized Cost (Book Value): SL Depreciable Depr Depr Accum Remaining START: $13,000 year cost basis expense depr book value 1 13,000 40% 5,200 5,200 7,800 2 7,800 4096 3,120 8,320 4,680 3 4,680 40% 1,872 10,192 2,808 4 2,808 40% 1,123 11,315 1,685 5 1,685 40% 685 12,000 1,000 =SV Fudge (cannot depreciate below SV) rate (Yr. 5 Remaining Book Value - SV ($1,685 - $1,000 = $685) MODELD: If placed in service 4/1other than 1/ 1.1 requires proration) SL year -- GAME (CC) Depreciable Depr cost basis rate 13,000 30%(1) 9,100 40% 5,460 40% 3,276 40% 1,966 40% 1,180 10%[2] Capitlaized Cost (Book Value): Depr Accum. Remaining START: $13,000 expense depr book value 3,900 3,900 9,100 3,640 7,540 5,460 2,184 9,724 3,276 1,310 11,034 1,966 786 11,820 1,180 180 12,000 1,000 -SV Fudge cannot depreciate below SV) * (Yr. 6 Remaining Book Value - SV) ($1,180 - $1,000 - $180) (1) 40% x 9/12 = 30% (2) 40% X 3/12 - 10% (9 month sin first year) (3 months in year six to complete 12 months) Straight Line Depreciation Model 4.04 Problem Straight Line Depreciation Truck Acquisition Cost $13,000 Salvage Value $1,000 (do not depreciate below SV Useful life 5 years or 100,000 miles Placed in Service 1/1/Yr1 Depreciable Cost = Capitalized Cost - Salvage Value MODELA: Placed Service Wyp 1: Capitalized Cost Book Value): SAL Depreciable Dopr Deor Accum. Romaining START 13.000 Yeer cost basis rate expense depr book value 1 12 000 20% 2.400 2.400 10,600 2 12.000 20% 2 400 4,800 8.2001 3 12,000 20% 2,400 7,200 5,800 4 12.000 20% 2.400 9.600 3.400 5 12,000 20% 2.400 12,000 1.000 =SV MOOB! Place in Service 4/11 other than 1/1Yr1 requires proration Capitalized Cost Book Value): SR Depreciable Depr Depr Accum Remaining START 1.000 Ver cost basis mto expense depr book value 1 12.000 15%(0) 1,800 1.800 11 200 2 12.000 20% 2.400 4,200 8.800 3 12,000 20% 2.400 6.600 6.400 12.000 20% 2.400 9.000 4,000 5 12.000 20% 2.400 11.400 1,600 e 12.000 542) 6001 12,000 1.000 -SV (1) 20% x 9/12 -15% 12) 20% 3/125% (9 months in first year) (3 months in year six to complete 12 months) Depreciation 904 Double Decline Model Problem Double Declining Balance 200% Truck Acquisition cost $13,000 Salvage Value $1,000 (do not depreciate below SV) Useful life 5 years or 100,000 miles Placed in Service 1/1/Yr1 Depreciable Cost = Capitalized Cost MODELC: Placed in Service: ilyril (CC) Capitlaized Cost (Book Value): SL Depreciable Depr Depr Accum Remaining START: $13,000 year cost basis expense depr book value 1 13,000 40% 5,200 5,200 7,800 2 7,800 4096 3,120 8,320 4,680 3 4,680 40% 1,872 10,192 2,808 4 2,808 40% 1,123 11,315 1,685 5 1,685 40% 685 12,000 1,000 =SV Fudge (cannot depreciate below SV) rate (Yr. 5 Remaining Book Value - SV ($1,685 - $1,000 = $685) MODELD: If placed in service 4/1other than 1/ 1.1 requires proration) SL year -- GAME (CC) Depreciable Depr cost basis rate 13,000 30%(1) 9,100 40% 5,460 40% 3,276 40% 1,966 40% 1,180 10%[2] Capitlaized Cost (Book Value): Depr Accum. Remaining START: $13,000 expense depr book value 3,900 3,900 9,100 3,640 7,540 5,460 2,184 9,724 3,276 1,310 11,034 1,966 786 11,820 1,180 180 12,000 1,000 -SV Fudge cannot depreciate below SV) * (Yr. 6 Remaining Book Value - SV) ($1,180 - $1,000 - $180) (1) 40% x 9/12 = 30% (2) 40% X 3/12 - 10% (9 month sin first year) (3 months in year six to complete 12 months)