M5 PPE Depreciation

Question 1

When is the units-of-production method of depreciation most appropriate?

Answer 1

to reflect that an asset’s service potential declines with use

Question 2

What do you ignore in your Double Declining Balance Calculation?

Answer 2

Salvage Value

Question 3

What’s never debited or credited in depreciation/amortization JE’s?

Answer 3

Cash