Comparison of Depreciation Methods

Details

Comparison of Depreciation Methods

Table 11.4 displays the depreciation for four depreciation methods.

Table 11.4: Comparison of Depreciation Methods


Straight Line	Sum-of-years Digits

Depreciation Table	Declining Balance

Under Depreciation Table, realize a 5-year class MACRS Depreciation actually lasts 6 years.
The Declining Balance method is Double Declining Balance with conversion to Straight Line.

For further reference, consider Newnan and Lavelle (1998). They offer explanations and graphs for the individual depreciation methods. They also analyze the differences between the various methods.

Chapter Contents
Previous
Next
Top