answersLogoWhite

0


Best Answer

Depreciation calculation can be used when attempting to calculate the values of property. It is important to take note as prices can fluctuate from several factors.

User Avatar

Wiki User

10y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: In what kinds of situations would one need to use depreciation calculation in real life?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What kinds of situations would make it easier for countries for central Asia to export oil and gas?

The situations would make it easier by sending it through pipelines.


What kinds of situations would make it easier for countries of Central Asia to export oil and gas?

The situations would make it easier by sending it through pipelines.


Is depreciation a controllable cost?

No. Depreciation would be considered an uncontrollable cost because it is fixed


When would a company consider using accelerated depreciation?

There are many reasons that a company may consider using accelerated depreciation. The main reason being that by using accelerated depreciation, this would decrease their tax payments.


What is the depreciation on a used Mitsubishi car?

The depreciation on a used Mitsubishi car is different for every car. There is no given set limit on depreciation for a used Mitsubishi car. Dealers would know more.


What would a permanent accounts include accumulated depreciation?

yes


What is lost depreciation tax shield?

Lost depreciation tax means that loss of that tax amount which could be saved if there would be depreciation expenses in profit and loss account which will reduce the profit and hence the tax as well.


17 plus 5 4?

The answer for your calculation is: 71. -- If your calculation is: 17 + 54 if your calculation is: 17 + 5 + 4, then it would be 26.


Is depreciation included as a cash flow in capital budgeting?

No depreciation is not included as depreciation is allocation of part of assets cost to income statement while in capital budgeting, full cost of asset is already included so if depreciation will also be included then there would be double counting of same asset.


Which method of depreciation would you use if you were to receive a bonus which is based on net profit?

which method of depreciation to use when bonus is received that is based on net profit


Can depreciation on a Fixed Asset be carried as a contra-asset on its own line on the balance sheet or does it have to be deducted from the Fixed Asset?

Depreciation of a Fixed Asset is always carried on the Balance Sheet in the Accumulated Depreciation Account (contra-asset). It is never deducted from the Fixed Asset.One reason for the Accumulated Depreciation account is that eventually, individual assets will be fully depreciated and their net values will be zero. If the depreciation were deducted from the asset, it would "fall off" the balance sheet. The accumulated depreciation account allows the assets to remain at book value in the asset account to maintain their visual presence on the books.The depreciation entry debits depreciation expense and credits accumulated depreciation.


Is depreciation is an asset liability or equity?

no Depreciation Expense is an expense on your Statement of Comprehensive Income (Profit and Loss Account) The depreciation expense in the year would then reduce the value of the asset to which the depreciation relates. If you have any further questions on this topic, please do not hesitate to contact me at info@hodgsons.co.uk -------------------------------------------- With Regards to the Accounting Equation. Equity (NAV)= Assets- Liabilities Depreciation would be considered negative equity (as are all expenses) as they represent a decrease in the net asset value- or NAV- (not through transaction with the entities owner)