There are several methods of depreciation of fixed assets

(d) Fixed asset depreciation methods \x0d\ Enterprises should be based on the expected realization of economic benefits associated with fixed assets, a reasonable choice of fixed asset depreciation methods. \x0d\\ The depreciation methods that can be chosen include the average annual limit method, workload method, double declining balance method and sum-of-the-years method. Once the depreciation method for fixed assets is determined, it cannot be changed arbitrarily. \x0d\ 1. Average annual depreciation method\x0d\ Annual depreciation = (original cost - estimated net salvage value) ÷ estimated useful life \x0d\ = Original cost x (1 - estimated net salvage value / original cost) ÷ estimated useful life \x0d\ = Original cost x annual depreciation rate \x0d\ 2. Workload method\x0d\ Depreciation per unit of workload = Original cost of the fixed asset x (1 - estimated net salvage rate) ÷ Estimated total amount of workload \x0d\ 2. x0d\ Monthly depreciation of a fixed asset = workload of the fixed asset for the month x depreciation per unit of workload\x0d\ 3. Double Declining Balance Method\x0d\ Annual depreciation = net value of fixed asset at the beginning of the period x 2/estimated life of the fixed asset\x0d\ Last two years changed to the Average Annual Life Method\x0d\ 4. Sum of the Years Method\x0d\ Annual depreciation = (Original cost - Estimated net salvage value) x annual depreciation rate\ x0d\ The annual depreciation rate is expressed as a declining fraction by adding the number of years period by period as the denominator of the declining fraction, and reversing the order of the number of years period by period as the numerator of the declining fraction for each year respectively. \x0d\ (E) Accounting for Depreciation of Fixed Assets \x0d\ Borrowing: Manufacturing Expenses (depreciation of production plant) \x0d\ Administrative Expenses (depreciation of the management of the enterprise, unused fixed assets) \x0d\ Selling Expenses (depreciation of the enterprise's dedicated sales department) \x0d\ Other Operating Costs (depreciation of the enterprise's rental of fixed assets) \x0d\ R&D Expenditures (the enterprise) R&D Expenditure (depreciation of fixed assets used in R&D of intangible assets) \x0d\ Construction in progress (depreciation of fixed assets used in construction in progress) \x0d\ Credit: Accumulated Depreciation