How to Calculate Depreciation Expense: A Comprehensive Guide for Students and Entrepreneurs

Calculating depreciation is essential whether you’re a student preparing for exams or an entrepreneur managing business finances. Depreciation distributes the cost of an asset over its useful life, impacting everything from financial statements to taxes.

In this guide, I walk through the 4 main methods:

• Straight-Line: Simplest and most common

• Double Declining Balance: Accelerated depreciation

• Sum-of-the-Years’ Digits: Faster in the early years

• Units of Production: Based on asset usage

Learn the formulas, see examples, and understand how to choose the right method for your needs.

➡️ Read now: How to Calculate Depreciation Expense: A Step-by-Step Guide with Examples

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