How to calculate depreciation expense in sales and cost schedule?

Depreciation expense: an accounting amount, usually calculated as a fixed percentage of the original cost of the asset, which must be regularly charged to the expense account or deducted from gross income to compensate for the depreciation of the asset.　　1. The tax law has clear provisions on the depreciation method of fixed assets of enterprises: the annual life method (straight-line method) is to be adopted, and the useful life of fixed assets is determined accordingly: 20 years for buildings; 10 years for machinery and equipment; and 5 years for transportation and lifting equipment, electronic equipment and other fixed assets. And determined in the calculation of the original value of depreciable fixed assets to be deducted from the salvage value: three-funded enterprises deducted at 10%, other enterprises deducted at 5%.　　2, combined with the situation of your unit, should be listed in the depreciation of items (equipment) according to a certain period of time to calculate depreciation, included in the monthly cost, but the original value to deduct 5% of the residual value.　　3, fixed assets recorded with the invoice for accounting purposes, depreciation to consider the useful life and salvage value, without the so-called assessment.　　① average life method. Annual depreciation rate = [1 - estimated net salvage rate] 100% / depreciable life annual depreciation amount = fixed assets original value * annual depreciation rate ② workload method. The workload method is divided into two types, one is to calculate depreciation in accordance with the hours of work, and the other is to calculate depreciation in accordance with the amount of work, the formula is as follows: for some transportation equipment, generally in accordance with the mileage depreciation. The formula is: unit mileage depreciation amount = original value * (1 - expected net salvage rate) / total exercise mileage annual depreciation amount = unit mileage depreciation amount * annual mileage according to the working hours of the formula for calculating depreciation: depreciation per working hour = original value * (1 - expected net salvage rate) / total working hours of the annual depreciation amount = depreciation per working hour * annual working hours ③ double-declining balance method. Annual depreciation rate = [2 / depreciable life] 100% Annual depreciation amount = net fixed assets * annual depreciation rate If the double declining balance method is applied, the net fixed assets less net salvage value should be amortized equally over the two years prior to the expiration of the depreciable life.　　(iv) Sum-of-the-years method. The use of the sum-of-the-years method is a method of calculating depreciation based on the balance of the original value of the fixed assets less their net salvage value, in accordance with a declining fraction (i.e., the annual depreciation rate, also known as the depreciation declining factor) from year to year. The annual depreciation rate is a changing fraction; the numerator is the number of years that can be used at the beginning of each year, and the denominator is the sum of the depreciable lives of the fixed assets added year by year (i.e., the factorial of the depreciable lives).　　The formula is: annual depreciation rate = {[depreciable life - used life] / depreciable life * (depreciable life + 1) / 2} X100% annual depreciation = (original value of fixed assets - estimated net salvage value) * annual depreciation rate Example: Example] A company will invest in a new project that requires an initial investment of 25 million yuan for the construction of equipment and plant, and at the end of the 5-year life of 5 million yuan of residual value left. The project generates revenues of $11.5 million and operating costs (excluding depreciation) of $3.2 million in the first year. These revenues and costs are expected to escalate 5% per year for the next 4 years. The company has an income tax rate of 33% and a cost of capital of 12%. Try depreciating under the straight-line depreciation method (SL method) and the double-declining-balance method (DDB method), respectively, and analyze the effects of using the different depreciation methods on the project's cash flows and valuation metrics, respectively.　　[Answer]: In the case of the straight-line depreciation method, the project depreciates annually: (2500-500)/5 = 4 (million yuan) Cash flow of the project in each year Cash flow statement of a project's investment Units: million yuan Name of the project 0 1 2 3 4 5 Cash outflow Investment in equipment and plant - 2500 500 Operating costs - 320 - 336 - 353 - 370 - 389 Cash inflow 1,808. The after-tax IRR of the project is calculated to be 18.37% and the pre-tax IRR is calculated to be 26.39%. After-tax NPV at 12% cost of capital = 4.571 (million dollars) Under accelerated depreciation using the double-declining-balance method, the project is depreciated annually as follows: Annual depreciation rate = 2 / depreciable life = 2/5 = 40% Annual depreciation = net fixed assets * annual depreciation rate in the last two years before the expiration of depreciation, is the net value of the net fixed assets net of the net salvage value of net amortization is calculated. calculated by average amortization.