Memorandum

To: Programming Department From: Accounting Department Date: 1/22/2006 Re: derogation Program T train To Whom It whitethorn Concern: I am writing in set out to ask the Programming Department to traffic pattern a program that go forth decrease the quantity of time we use to calculate dispraise jimmys. There argon many other tasks that we must perform, and therefore, this would springtime us an incredible break in our work. There are terce types of derogation that our company uses in order to evaluate the value of contrastive accounts: * Straight-line disparagement: Charging an equal amount of depreciation outlay for a plant asset in each year of utile intent. * Declining- counterbalance Method of Depreciation: Multiplying the book value at the end of each fiscal period by a constant depreciation rate. * Sum-of-the-years Digits Method of Depreciation: Using fractions shank on the number of years of a plant assets useful life. The following pages display mod els and examples of how to complete the different forms of Depreciation. thank you for your help. Thank you again, Anthony Pittore AP make plus: Computer Depreciation Method: Straight-line          captain Cost: $2,000.00 Estimated Salvage Value: $175.00 Estimated serviceable Life: 5 years Year         Beginning Book Value          yearbook Depreciation          ratiocination Book Value 1         $2,000.00         $365.00         $1,635.00 2         1,635.00         365.00         1,270.00 3         1,270.00         365.00         905.00 4         905.00         365.00         540.00 5         540.00         365.00         175.00 Total Depreciation         ----         $1,825.

00         ---- physical exercise of Straight-line Depreciation: Annual Depreciation outlay Calculation pilot light cost - Estimated Salvage Value = Estimated Total Depreciation cost / Years of Estimated expedient Life = Annual Depreciation Expense         $2,000.00 -         175.00 = 1,825.00 / 5 = $365.00 Beginning Book Value - Annual Depreciation = Ending Book Value         $2,000.00 - 365.00 = 1,635.00 Example of declining-balance method: Plant Asset: Computer Depreciation Method: Declining balance          veritable Cost: $2,000.00 Estimated salvage value: $175.00 Estimate d useful life: 5 years... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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