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Straight-Line Depreciation:
- Calculation: Monthly expense = (Gross Cost - Salvage Value) / Useful Life.
- Accumulated Depreciation: Total of prior months’ depreciation.
- Net Book Value: Gross Cost - Accumulated Depreciation.
Units of Production Depreciation:
- Calculation: Monthly expense = Month's Usage * (Depreciable Cost / Estimated Production Volume).
- Accumulated Depreciation: Sum of depreciation from all months.
- Net Book Value: Gross Cost - Accumulated Depreciation.
The "Closing the Month" document may display a warning when calculating the depreciation of the company's assets.
Click on the triangle to read what the error is related to.
