1 / 10

Benefits of Accelerated Depreciation

Benefits of Accelerated Depreciation. March 21, 2005. Marietta Computer Rentals. Depreciation Overview Comparison of Methods Benefits of Accelerated Depreciation Cost & Timeline Conclusion. Depreciation Overview. Current Method Straight-Line Definition Proposed Method Accelerated

zubeda
Download Presentation

Benefits of Accelerated Depreciation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Benefits of Accelerated Depreciation March 21, 2005

  2. Marietta Computer Rentals • Depreciation Overview • Comparison of Methods • Benefits of Accelerated Depreciation • Cost & Timeline • Conclusion

  3. Depreciation Overview • Current Method • Straight-Line • Definition • Proposed Method • Accelerated • Definition

  4. Comparison of Methods • Straight-Line • $625/year • Accelerated • $1500 year 1 • $750 year 2 • $125 year 3 • $125 year 4 Background: Cost $3000 Salvage Value $500 Useful Life 4 years

  5. Comparison of Methods • Differences

  6. Benefits of Accelerated Depreciation • Anticipates early benefit • Considers potential for obsolescence, or future inadequacy • Allows for inflation • Accelerates and increases tax deductions

  7. Benefits of Accelerated Depreciation • Offsets future repairs and maintenance

  8. Cost & Timeline • Cost—Minimal, Reward—Great • Timeline—Short

  9. Conclusion • Change to Accelerated Depreciation • Benefits • Minimal Costs • Short Time to Change • Next Step

  10. Questions

More Related