ACCT 201A at California State University--Fullerton













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acct201a.com Formula Sheet
Depreciable Base = Cost - Salvage Value
Straight Line Depreciation Expense = Depreciable Base / Useful Life
Assets
– Accumulated Depreciation
Book Value
DDB Depreciation Expense = 2 * (1 / Useful Life) * Book Value
When using DDB, make sure you don't depreciate more than the depreciable base!
Units of Production Depreciation Expense = Units Produced * (Depreciable Base / Total Expected Units)
This is not different than straight line, except that instead of "years", we're using "units".
Partial Year Depreciation Expense = SL or DDB Full Year Expense * Months In Service / 12
When using units of production, there is no "partial year" formula, since UoP is not time based in the first place.
Purchase Price of Asset = Purchase Price of Group * (FMV of Asset / FMV of Whole Group)
Lump Sum Purchases are also called Basket Purchases, or Group Purchases