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# TOPIC: Let's look at depreciation

## Let's look at depreciation 8 years 7 months ago #6982

 Tracey South Offline Expert Boarder Posts: 131 Karma: 6 Thank you received: 27 Hi Michael: Remember that part of this equation is the straight line depreciation. (1/# of years) = 1/5 =.20 or 20%. For double declining depreciation, you double the straight line depreciation (.20×2) =.4 or 40%. Hope this helps. Community Moderator Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## Let's look at depreciation 8 years 7 months ago #6983

 Tracey South Offline Expert Boarder Posts: 131 Karma: 6 Thank you received: 27 To complete the equation: 2 * straight line depreciation * book value Year one book value = 1000 Straight line depreciation = 1 / 5 = .2 or 20% Depreciation Year 1: 2 * .2 * 1000 = \$400 Year two book value = 1000 - 400 = \$600 Depreciation Year 2 : 2 * .2 * 600 = \$240 Hope this helps. Tracey Community Moderator The following user(s) said Thank You: Cecil D'Souza Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable. Last edit: by Tracey South. Reason: Typo

## Let's look at depreciation 8 years 7 months ago #6984

 Michael Topic Author Visitor Both of those examples explain perfectly. It seems the question was missing that valuable piece of information. Thanks to all! Michael Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.

## Let's look at depreciation 2 years 4 months ago #29342

 Susan Correa Topic Author Visitor Appreciate it much Tracy ! Your e-mail address will never be displayed on the site. Check this box to be notified of replies to this topic. Note: BBcode and smileys are still usable.
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