USA Depreciation rate calculation


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How should I calculate the depreciation of each type of fixed assets when we have disposals, written off and transfer in/out ?

I suppose straight line method could be used here , or I am wrong ?

Besides, does impairment loss affect the calculation for depreciation rate ?



 

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bklynboy

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All this schedule shows is a roll forward and cant be used to calculate the depreciation

You depreciate each asset not each asset class.

Disposals/Write-offs have no further depreciation since the asset/accumulated depreciation was removed.

Impairment does affect the depreciation recorded since your BV will now be reduced and needs to factored into the amount that gets depreciated going forward.

Seems transfers are for assets under construction (meaning they are still being built and not ready for use so no depreciation yet). Once they move to the asset in use category begin depreciating under the asset class schedule it is related to.

Is this a real world question or an assignment?
 
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Becky

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Is this a real world question or an assignment?
When I saw it I assumed it's a study question, and I left it because the OP seems to be asking for how to approach the question rather than asking for the answer. Guess we'll see...
 

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