1. Depreciation Is depreciation a revenue or expense? What types of items get depreciated? –L–L Depreciation –A–A Why depreciate something?

2. Depreciation To calculate depreciation, you need to know: – The asset’s original – The asset’s – The rate at which the asset is depreciated over time Straight-Line depreciation – Asset depreciates until it reaches its salvage value Declining balance depreciation – Asset depreciates until it reaches its salvage value. – This method : more depreciation occurs earlier in the asset’s life

3. Calculating Depreciation See page 486