Calculation should include
- defining salvage value and useful life
- explaining how depreciation affects taxes and profits
- listing depreciable assets and using straight-line and other depreciation methods.
Process/Skill Questions:
- What is depreciation?
- How does one calculate depreciation using the straight-line method?
- How does one determine which assets are depreciable?
- How is life expectancy of equipment determined when calculating depreciation?
- How does depreciation affect taxes?
- What items depreciate the fastest?