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2 cards from this section. Quick, good the night before a test.
What is depreciation?
Think about why a machine loses value over time.
What does SYD stand for?
It's a method of calculating depreciation.
What does the DDB method focus on?
Think about which expenses are recorded earlier with this method.
True or False: The SYD method calculates depreciation purely on historical cost.
Does it take years remaining into account?
Calculate the first-year depreciation for an asset costing $50,000 with a salvage value of $5,000 and a useful life of 10 years using SYD.
First, figure out the sum of years from 1 to 10.
Given a $20,000 asset and a salvage value of $2,000 with a DDB rate for 5 years, calculate the book value after 1 year.
Calculate depreciation using DDB formula first.
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