Depreciation Calculator
Asset Details
Depreciation Analysis
Total Depreciation
$90,000
Annual Depreciation
$18,000
Depreciable Base
$90,000
Recovery Period
5 years
| Year | Depreciation | Book Value | Accumulated |
|---|---|---|---|
| 1 | $18,000 | $82,000 | $18,000 |
| 2 | $18,000 | $64,000 | $36,000 |
| 3 | $18,000 | $46,000 | $54,000 |
| 4 | $18,000 | $28,000 | $72,000 |
| 5 | $18,000 | $10,000 | $90,000 |
Understanding Depreciation
Depreciation Methods
Straight Line
- Equal annual amounts
- Simple to calculate
- Most common method
- Consistent expenses
Declining Balance
- Accelerated depreciation
- Higher early expenses
- Common for technology
- Tax advantages
Key Terms
- Asset cost (basis)
- Salvage value
- Useful life
- Book value
- Accumulated depreciation
Tax Considerations
- Section 179 expensing
- Bonus depreciation
- MACRS depreciation
- Tax deduction timing
- Asset classification