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Understanding Depreciation

This topic contains 1 reply, has 2 voices, and was last updated by Crystalynn Shelton 1 month ago.

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March 19, 2018 at 4:54 pm #174286 Reply

ernie

Question: My question is why can’t Capex amount of 32,000,0000 be depreciated in year 1. See example below so that deprecation expense for year 1 will be 28,800,000 instead of 25,600,000?

Uselife 10 Years (SLD)

Year 1
Begin PPE 256,000,000
Capex
Year 1 : 32,000,000
Year 2: 32,000,000
Year 3: 9,600,000

D&A
Year 1 = 25,600,000
Year 2 = 28,800,000
Year 3 = 32,000,000

March 19, 2018 at 4:55 pm #176481 Reply

Crystalynn Shelton
Moderator

Hi Ernie, I don’t understand your question. What kind of depreciation are you trying to use?

Crystalynn
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