Depreciation: What it means and how to calculate it
April 20, 2023What is depreciation?
Functions of depreciation
Depreciation expenses (cost of doing business)
Depreciation and tax
Depreciation on your balance sheet and valuing your business
What is a depreciation schedule?
How to calculate depreciation
Straight-line depreciation method
![Straight-line depreciation = (Asset Cost – Residual Value/Useful Life)](https://images.prismic.io/ember-bank/c21581b0-bc4a-4e11-a8c2-863f54b85e57_Equity_IMG+%281%29.png?auto=compress,format)
Unit of production depreciation method
![Per-Unit Depreciation = (Asset Cost – Residual Value)/Useful Life in Units of Production](https://images.prismic.io/ember-bank/d03e97b7-8304-421b-849c-b7d0dec865bb_Equity_IMG+%283%29.png?auto=compress,format)
![Total Depreciation = Per-Unit Depreciation x Units Produced](https://images.prismic.io/ember-bank/668148e0-5937-4ae8-b31c-2272758e126d_Depreciation.png?auto=compress,format)
Double-declining balance depreciation method
![Depreciation = 2 x Straight-Line Depreciation Rate x Book Value at the Beginning of the Year](https://images.prismic.io/ember-bank/6c53d5f4-92a0-460c-8e7e-8ee6e172a8e7_Depreciation+%281%29.png?auto=compress,format)