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Understanding Depreciation

Fit Small Business: Get Your Business Into Shape! › Forums › Ask a Question › Understanding Depreciation

This topic contains 1 reply, has 2 voices, and was last updated by  Crystalynn Shelton 5 months 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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