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  • Module 3 Formula

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    Alyanna Alcantara
    15 views7 pages
    The document discusses several methods for calculating depreciation expense over the useful life of a fixed asset, including the straight-line method, sum of the years' digits method, double declining balance method, units of production method, composite and group method, retirement method, replacement method, inventory method, and revaluation model. Tables are presented showing calculations for depreciation amounts, carrying amounts, accumulated depreciation, and depreciation expense under each method.

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    Original Title

    MODULE-3-FORMULA

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    The document discusses several methods for calculating depreciation expense over the useful life of a fixed asset, including the straight-line method, sum of the years' digits method, double declining balance method, units of production method, composite and group method, retirement method, replacement method, inventory method, and revaluation model. Tables are presented showing calculations for depreciation amounts, carrying amounts, accumulated depreciation, and depreciation expense under each method.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    15 views7 pages

    Module 3 Formula

    Uploaded by

    Alyanna Alcantara
    The document discusses several methods for calculating depreciation expense over the useful life of a fixed asset, including the straight-line method, sum of the years' digits method, double declining balance method, units of production method, composite and group method, retirement method, replacement method, inventory method, and revaluation model. Tables are presented showing calculations for depreciation amounts, carrying amounts, accumulated depreciation, and depreciation expense under each method.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    of 7

    STRAIGHT LINE METHOD:

    DEPRECIABLE AMOUNT
    RESIDUAL VALUE/SALVAGE
    DIVIDE: USEFUL LIFE
    ANNUAL DEPRECIATION #DIV/0!
    #INSERT CA ON YELLOW
    DATE DEPRECIATION CARRYING AMOUNT
    A B

    0
    0
    0
    0
    0

    SUM OF THE YEAR DIGITS SYD


    LIFE 4
    MULTIPLY: LIFE + 1 5
    DIVIDE: BY 2 2
    SYD DENOMINATOR 10

    DATE DEPRECIABLE AMOUNT SYD RATE


    A B

    DOUBLE DECLINING BALANCE:

    200% 200%
    DIVIDE: LIFE
    DOUBLE DECLINING RATE: #DIV/0!

    150% 150%
    DIVIDE: LIFE
    150% DECLINING RATE #DIV/0!
    #INSERT CA ON YELLOW
    DATE DD RATE CARRYING AMOUNT

    % #VALUE!
    #VALUE!
    #VALUE!
    #VALUE!
    #VALUE!
    #VALUE!

    UNITS OF PRODUCTION METHOD:

    OUTPUT METHOD:
    COST
    LESS: RESIDUAL VALUE/SALVAGE
    DEPRECIABLE AMOUNT 0
    DIVIDE: EST. TOTAL UNITS OF OUTPUT
    DEPRECIATION RATE #DIV/0!

    DATE UNITS PRODUCED DEP. RATE

    INPUT METHOD:
    COST
    LESS: RESIDUAL VALUE
    DEPRECIABLE AMOUNT
    DIVIDE: EST. TOTAL HOURS OF INPUT
    DEPRECIATION RATE

    DATE UNITS PRODUCED DEP. RATE


    COMPOSITE AND GROUP METHOD

    TOTAL DEPRECIABLE AMOUNT


    DIVIDE: TOTAL ANNUAL DEPRECIATION
    COMPOSITE (GROUP) LIFE #DIV/0!

    TOTAL ANNUAL DEPRECIATION


    DIVIDE: TOTAL COST
    COMPOSITE (GROUP) RATE #DIV/0!

    RETIREMENT METHOD MONTH1 MONTH2


    COST OF OLD () RETIRED
    LESS: PROCEEDS FROM SALE OF OLD ()
    DEPRECIATION EXPENSE 0 0
    TOTAL DEPRECIATION EXPENSE 0

    REPLACEMENT METHOD MONTH1 MONTH2


    COST OF NEWLY ACQUIRED ()
    COST OF OLD () RETIRED
    PROCEEDS FROM SALE OF OLD
    TOTAL COST OF REPLACEMENT 0
    COST OF ASSETS RETIRED 0
    LESS: PROCEEDS FROM SALE OF OLD () 0
    TOTAL DEPRECIATION EXPENSE 0

    INVENTORY METHOD:
    DDB RATE
    COST
    DEP. EXP 20X1
    DEP. EXP 20X2
    DEP. EXP 20X3
    CARRYING AMOUNT 20X3 0
    DIVIDE BY () YEARS REMAINING LIFE
    ANNUAL DEPRECIATION #DIV/0!

    REVALUATION MODEL

    FAIR VALUE xx
    LESS CARRYING AMOUNT (xx)
    REVALUATION PLUS xx
    ACCUMULATED DEPRECIATION
    C
    0
    0
    0
    0
    0
    0

    HISTORICAL COST
    DEPRECIATION ACC. DEP. CARRYING AMOUNT
    C= A X B D= CUM. "C" E = HCOST -D
    0 0 0
    0 0 0
    0 0 0
    0 0 0
    0 0 0
    0 0 0
    0 0 0
    0 0 0
    0 0 0
    DEP EXPENSE ACC. DEP.

    #VALUE! #VALUE!
    #VALUE! #VALUE!
    #VALUE! #VALUE!
    #VALUE! #VALUE!
    #VALUE! #VALUE!
    #VALUE! #VALUE!

    DEP EXPENSE ACC. DEP. CARRYING AMOUNT


    0
    0
    0
    0
    0
    0
    0
    0

    DEP EXPENSE ACC. DEP. CARRYING AMOUNT


    0
    0
    0
    0
    0
    0
    0
    0

    MONTH3 MONTH4

    0 0

    MONTH3 MONTH4

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