Understanding Depreciation

Accounting

• 
  ernie 1 year, 8 months ago

  Understanding Depreciation

  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

  #174286 Reply
  1 Reply
  
  Crystalynn Shelton
  

  Participant

  

  1 year, 8 months ago

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

  Crystalynn

  #176481 Reply ♥ Like0 ♥
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