The assumption is that in the first year you buy the equipment on July 1, so you get half a year of depreciation. The remaining half year of depreciation is in year 4.
Hi Roy thanks for this insightful video. Just wanted to clarify, will the depreciation rates in % for any given year always be provided by the accounting body? If not, how would you go about calculating them. Also is MACRS the best method out there as far as recovering costs in the quickest amount of time?
You can just look it up in a table. There are 6 yrs because the assumption is that the equipment is put into use on July 1, so the first year is a half year of depreciation and the last year is a half year.
Thank you so much! This explained more than my $200 finance book from McGraw Hill did!
This was easy to understand an implicit video that relates to my project in corporate finance.
Cheers!
Thank you for the great video! Precisely answered my doubt "why 3-yr has 4 lines"!!!!
The assumption is that in the first year you buy the equipment on July 1, so you get half a year of depreciation. The remaining half year of depreciation is in year 4.
@@RonaldMoy what if the asset is used from the beginning of the year.
Thanks man im reading a book on finance and this really helped understand the term 👍👍👍👍
THANK YOU
Thank you
Hi Roy thanks for this insightful video. Just wanted to clarify, will the depreciation rates in % for any given year always be provided by the accounting body? If not, how would you go about calculating them. Also is MACRS the best method out there as far as recovering costs in the quickest amount of time?
The IRS determines the depreciation table. It recovers costs much faster than straight line.
thanks I forgot how to do this
Very difficult for initial stage of financial management
No idea about all Depreciasion
Plz solve In easy and simple way
where did you get the percentages from? are these standard percentages or did you just use them as examples?
These % are given by the IRS. You can just search the Internet for the %s.
thanks
Thank you sir
sama-sama 😂
what is a tax saving? who will give you 30,800? from the 230,800?
How do you get 5.76% for year 6?
You can just look it up in a table. There are 6 yrs because the assumption is that the equipment is put into use on July 1, so the first year is a half year of depreciation and the last year is a half year.