Here are the depreciation methods for fixed assets
1. Annual average method
Annual average method, also known as the straight-line method, is a method of equalizing the amount of depreciation accrued on a fixed asset over the estimated useful life of the fixed asset. The amount of depreciation calculated using this method is equalized for each period. The formula is as follows:
Annual depreciation rate = (l - expected net salvage rate) / expected useful life (years)
Monthly depreciation rate = annual depreciation rate / 12
Monthly depreciation = fixed assets original price × monthly depreciation rate
2. workload method.
Workload method, is based on the actual workload of fixed assets depreciation amount of a method. The formula is as follows:
Unit of workload depreciation = the original cost of fixed assets / (1 - the estimated net salvage rate) / the estimated total workload
A fixed asset monthly depreciation = the fixed asset workload of the month / unit of workload depreciation
3. Double Declining Balance Method
Double Declining Balance Method, without taking into account the estimated net salvage value of the fixed assets, based on the fixed assets at the beginning of each year, the amount of depreciation of fixed assets. Without considering the estimated net salvage value of fixed assets, based on the net value of fixed assets at the beginning of each year and double the straight-line depreciation rate of a method of calculating depreciation of fixed assets. When applying this method to calculate the depreciation amount, since the net value of fixed assets at the beginning of each year is not deducted from the estimated net salvage value, the depreciation amount of fixed assets should be calculated within two years before the expiration of its depreciable life, the net value of fixed assets less the estimated net salvage value of the balance of the average amortization. The formula is as follows:
Annual depreciation rate = 2 / expected useful life
Monthly depreciation rate = annual depreciation rate / 12
Monthly depreciation amount = the beginning of the book balance of the fixed assets × monthly depreciation rate
4. Sum-of-the-years method
The sum-of-the-years method, also known as the aggregate life method, is the original price of the fixed assets minus the estimated net salvage value. Multiply the original cost of the fixed asset minus the estimated net salvage value by a declining fraction with the remaining useful life of the fixed asset as the numerator and the sum of the estimated useful life year-by-year figures as the denominator to calculate the annual depreciation amount. The formula is as follows: annual depreciation rate = useful life / expected useful life of the sum of the years
Monthly depreciation rate = annual depreciation rate / 12
Monthly depreciation = (fixed assets original price - the expected net salvage value) × monthly depreciation rate
Because you give the tips, did not give the useful life of the asset, as well as the rate of salvage value, so we can not help you to account for it