1. Depreciation of Assets
Ag I Class

2. What is Depreciation?
It is a method of how
assets lose their value.
It is considered a NON-
CASH business expense.

3. Depreciation Schedule
is a recording of
the assets history
that will allow
its true market
value to be
known.

4. How is depreciation determined?
yearly depreciation =
purchase price - salvage value
years of useful life

5. Purchase price How much we paid for the asset. Can be either
new or used.

6. Salvage Value How much you think the asset will be worth when you are
done with it.

7. Years of Useful Life
How many
years you
plan on using
this asset.

8. Depreciation
the end