📉Depreciation Formulas

Units-of-Production

(Asset Cost - Salvage Value) ÷ Total Estimated Units × Units This Period = Depreciation

What It Means

Based on actual usage, not time.

✓Best for: Machinery, vehicles (mileage-based)

(Asset Cost - Salvage Value) ÷ Useful Life = Annual Depreciation

2 × (1 ÷ Useful Life) × Book Value at Beginning of Year = Depreciation

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