急!! depreciation小問題

The idea of depreciation is to calculate how much the fixed assets are worth in any period of time.

Let illustrate it as the following examples.

Example: Peter owns a wood-cutting factory. During the year, Peter purchases a wood-cutting machine in the amount of $100,000. Peter estimates the useful life of the machine is 5 years. Therefore, provision for this machinery is:

Cost / Useful Life = $100,000 / 5 = $20,000
OR
Cost * (100 / Useful Life) $100,000 * 100/5 = $100,000 * 20% = $20,000

It means that Peter believes that the wood-cutting machine will be worth $80,000 ($100,000 - $20,000) after first year.

Some companies, especially for high-volume production industry, use production base method to calculate depreciation. Since Useful Life is not the base or concern of the cost of depreciation, Useful Life is not a factor to calculate depreciation.

Example: Mary operates a Garment factory. She recently purchased a sewing machine for $50,000. She believes that the future value of sewing machine will be depended on how often she uses the machine. Therefore, the depreciation will be based on the actual usage. Let say the estimated life time of usage of the sewing machine is 1,000 hours, and Mary uses 250 hours during the first year and 100 hours the year after. The depreciation will be calculated as the following:

First year
Cost * (Actual time of usage / Life time of usage) = $50,000 * (250/1,000) = $12,500
Second year
$50,000 * (100/1,000) = $5,000

It means that Mary believes the sewing machine is worth $37,500 ($50,000 - $12,500) after first year (250 hours of usage), and $32,500 ($50,000 - $12,500 - $5000) for the second year.

通常計折舊都是乘一個固定%, 只是用成本或餘值. 但在計這個%時, 會將成本除Useful Life.

best regards,
Samson So
www.tripro.com.hk