ACCUMULATED DEPRECIATION - Practical Calculation

How to Calculate Accumulated Depreciation 📉

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Welcome to Accounting Corner! Today, we’ll show you how to calculate accumulated depreciation using the straight-line method. Here’s a quick breakdown:

Asset cost: Four hundred thousand dollars 💸
Residual value: Fifty thousand dollars 💰
Useful life: Six years 🕒
Depreciation method: Straight-line 📏
Steps:

Annual depreciation: (Cost - Residual value) / Useful life = Fifty-eight thousand, three hundred thirty-three dollars 📊

Calculate depreciation period: Three years and one month 📅

Total accumulated depreciation: One hundred seventy-nine thousand, eight hundred sixty-one dollars and eleven cents ✅

Stay tuned for more accounting tips! 📚🔍