Depreciation worksheet

1. Depreciation in year 1: $12,785.71

1. Find the amount to spread out (the depreciable base): cost minus what it'll be worth at the end

   $\mathrm{\$50,000.00}-\mathrm{\$5,250.00}$$=\mathrm{\$44,750.00}$

2. Add up the year numbers 1 + 2 + … + 6. A shortcut gives the total: n(n + 1) ÷ 2, where n is the life in years

   $\frac{6\times 7}{2}$$=21$

3. In year 1, 6 years of life remain at the start, so take 6/21 of the base

   $\mathrm{\$44,750.00}\times \frac{6}{21}$$=\mathrm{\$12,785.71}$

4. Book value at the end of year 1: the value at the start of the year minus this year's depreciation

   $\mathrm{\$50,000.00}-\mathrm{\$12,785.71}$$=\mathrm{\$37,214.29}$

5. Running total of depreciation through year 1: cost minus book value

   $\mathrm{\$50,000.00}-\mathrm{\$37,214.29}$$=\mathrm{\$12,785.71}$

2. Depreciation in year 1: $11,375.00

1. Find the amount to spread out (the depreciable base): cost minus what it'll be worth at the end

   $\mathrm{\$50,000.00}-\mathrm{\$4,500.00}$$=\mathrm{\$45,500.00}$

2. Straight line charges the same every year, so split the base evenly over 4 years

   $\frac{\mathrm{\$45,500.00}}{4}$$=\mathrm{\$11,375.00}$

3. Book value at the end of year 1: the value at the start of the year minus this year's depreciation

   $\mathrm{\$50,000.00}-\mathrm{\$11,375.00}$$=\mathrm{\$38,625.00}$

4. Running total of depreciation through year 1: cost minus book value

   $\mathrm{\$50,000.00}-\mathrm{\$38,625.00}$$=\mathrm{\$11,375.00}$

3. Depreciation in year 1: $15,345.00

1. Find the amount to spread out (the depreciable base): cost minus what it'll be worth at the end

   $\mathrm{\$60,000.00}-\mathrm{\$4,200.00}$$=\mathrm{\$55,800.00}$

2. Divide the base by the total units you expect, to get a cost for each unit of use

   $\frac{\mathrm{\$55,800.00}}{\mathrm{100,000}}$$=0.558$

3. Multiply by the 27,500 units used in year 1

   $0.558\times \mathrm{27,500}$$=\mathrm{\$15,345.00}$

4. Book value at the end of year 1: the value at the start of the year minus this year's depreciation

   $\mathrm{\$60,000.00}-\mathrm{\$15,345.00}$$=\mathrm{\$44,655.00}$

5. Running total of depreciation through year 1: cost minus book value

   $\mathrm{\$60,000.00}-\mathrm{\$44,655.00}$$=\mathrm{\$15,345.00}$

4. Depreciation in year 1: $11,388.89

1. Find the amount to spread out (the depreciable base): cost minus what it'll be worth at the end

   $\mathrm{\$45,000.00}-\mathrm{\$4,000.00}$$=\mathrm{\$41,000.00}$

2. Divide the base by the total units you expect, to get a cost for each unit of use

   $\frac{\mathrm{\$41,000.00}}{\mathrm{90,000}}$$=0.455556$

3. Multiply by the 25,000 units used in year 1

   $0.455556\times \mathrm{25,000}$$=\mathrm{\$11,388.89}$

4. Book value at the end of year 1: the value at the start of the year minus this year's depreciation

   $\mathrm{\$45,000.00}-\mathrm{\$11,388.89}$$=\mathrm{\$33,611.11}$

5. Running total of depreciation through year 1: cost minus book value

   $\mathrm{\$45,000.00}-\mathrm{\$33,611.11}$$=\mathrm{\$11,388.89}$

5. Depreciation in year 3: $6,840.00

1. Find the amount to spread out (the depreciable base): cost minus what it'll be worth at the end

   $\mathrm{\$47,500.00}-\mathrm{\$3,000.00}$$=\mathrm{\$44,500.00}$

2. Find the yearly rate: 200% ÷ 5 years

   $\frac{\mathrm{200\%}}{5}$$=\mathrm{40\%}$

3. Take that percentage of the book value at the start of year 3

   $\mathrm{\$17,100.00}\times \mathrm{40\%}$$=\mathrm{\$6,840.00}$

4. Book value at the end of year 3: the value at the start of the year minus this year's depreciation

   $\mathrm{\$17,100.00}-\mathrm{\$6,840.00}$$=\mathrm{\$10,260.00}$

5. Running total of depreciation through year 3: cost minus book value

   $\mathrm{\$47,500.00}-\mathrm{\$10,260.00}$$=\mathrm{\$37,240.00}$

6. Depreciation in year 1: $6,750.00

1. Find the amount to spread out (the depreciable base): cost minus what it'll be worth at the end

   $\mathrm{\$45,000.00}-\mathrm{\$4,500.00}$$=\mathrm{\$40,500.00}$

2. Straight line charges the same every year, so split the base evenly over 6 years

   $\frac{\mathrm{\$40,500.00}}{6}$$=\mathrm{\$6,750.00}$

3. Book value at the end of year 1: the value at the start of the year minus this year's depreciation

   $\mathrm{\$45,000.00}-\mathrm{\$6,750.00}$$=\mathrm{\$38,250.00}$

4. Running total of depreciation through year 1: cost minus book value

   $\mathrm{\$45,000.00}-\mathrm{\$38,250.00}$$=\mathrm{\$6,750.00}$

7. Depreciation in year 1: $8,840.00

1. Find the amount to spread out (the depreciable base): cost minus what it'll be worth at the end

   $\mathrm{\$60,000.00}-\mathrm{\$4,750.00}$$=\mathrm{\$55,250.00}$

2. Divide the base by the total units you expect, to get a cost for each unit of use

   $\frac{\mathrm{\$55,250.00}}{\mathrm{100,000}}$$=0.5525$

3. Multiply by the 16,000 units used in year 1

   $0.5525\times \mathrm{16,000}$$=\mathrm{\$8,840.00}$

4. Book value at the end of year 1: the value at the start of the year minus this year's depreciation

   $\mathrm{\$60,000.00}-\mathrm{\$8,840.00}$$=\mathrm{\$51,160.00}$

5. Running total of depreciation through year 1: cost minus book value

   $\mathrm{\$60,000.00}-\mathrm{\$51,160.00}$$=\mathrm{\$8,840.00}$

8. Depreciation in year 1: $25,300.00

1. Find the amount to spread out (the depreciable base): cost minus what it'll be worth at the end

   $\mathrm{\$57,500.00}-\mathrm{\$5,000.00}$$=\mathrm{\$52,500.00}$

2. Find the yearly rate: 220% ÷ 5 years

   $\frac{\mathrm{220\%}}{5}$$=\mathrm{44\%}$

3. Take that percentage of the book value at the start of year 1

   $\mathrm{\$57,500.00}\times \mathrm{44\%}$$=\mathrm{\$25,300.00}$

4. Book value at the end of year 1: the value at the start of the year minus this year's depreciation

   $\mathrm{\$57,500.00}-\mathrm{\$25,300.00}$$=\mathrm{\$32,200.00}$

5. Running total of depreciation through year 1: cost minus book value

   $\mathrm{\$57,500.00}-\mathrm{\$32,200.00}$$=\mathrm{\$25,300.00}$

9. Depreciation in year 1: $5,958.33

1. Find the amount to spread out (the depreciable base): cost minus what it'll be worth at the end

   $\mathrm{\$41,000.00}-\mathrm{\$5,250.00}$$=\mathrm{\$35,750.00}$

2. Straight line charges the same every year, so split the base evenly over 6 years

   $\frac{\mathrm{\$35,750.00}}{6}$$=\mathrm{\$5,958.33}$

3. Book value at the end of year 1: the value at the start of the year minus this year's depreciation

   $\mathrm{\$41,000.00}-\mathrm{\$5,958.33}$$=\mathrm{\$35,041.67}$

4. Running total of depreciation through year 1: cost minus book value

   $\mathrm{\$41,000.00}-\mathrm{\$35,041.67}$$=\mathrm{\$5,958.33}$

10. Depreciation in year 1: $15,480.00

1. Find the amount to spread out (the depreciable base): cost minus what it'll be worth at the end

   $\mathrm{\$45,000.00}-\mathrm{\$6,300.00}$$=\mathrm{\$38,700.00}$

2. Add up the year numbers 1 + 2 + … + 4. A shortcut gives the total: n(n + 1) ÷ 2, where n is the life in years

   $\frac{4\times 5}{2}$$=10$

3. In year 1, 4 years of life remain at the start, so take 4/10 of the base

   $\mathrm{\$38,700.00}\times \frac{4}{10}$$=\mathrm{\$15,480.00}$

4. Book value at the end of year 1: the value at the start of the year minus this year's depreciation

   $\mathrm{\$45,000.00}-\mathrm{\$15,480.00}$$=\mathrm{\$29,520.00}$

5. Running total of depreciation through year 1: cost minus book value

   $\mathrm{\$45,000.00}-\mathrm{\$29,520.00}$$=\mathrm{\$15,480.00}$