That feeling when your Closing Book Value matches your Residual Value... 😌 TIMESTAMPS 00:00 - Intro 00:10 - What is Depreciation? 00:21 - What is the Sum of the Year's Digits Method? 00:46 - Example 01:22 - Step 1: Write Down What You Know 01:49 - Step 2: Build a Depreciation Schedule 02:24 - Step 3: Calculate the Depreciation Rate, Depreciation Expense, Accumulated Depreciation & Book Values 02:53 - How to Calculate Sum of the Year's Digits Depreciation Rate 04:48 - How to Calculate Sum of the Year's Digits Depreciation Expense 07:48 - Sum of the Year's Digits Depreciation Graph
James, You should be paid very well for the knowledge you are sharing with others...you put many, many instructors to shame. I used to fear accountants at year end...your videos have made me so much less stressed ( I'm a bookkeeper). Thank you so much for helping us here on your channel. You are brilliant!
Started from The Accounting Equation for Beginners video and made it here after watching 36 of your videos. You Legend James :) The marathon has come to an end and did not get sick of it.
Thank you so much for all the financial accounting videos. I failed my exam last year coz the books does not explain as well as you. im writing exam again tomorrow and i feel so positive this time around thanks to you!
LOVE your videos!! Some suggested topics: - Accounting Jargon: an overview of the common expressions and what they mean "P&L, COGS, Gross Profit versus Net Profit" etc. - SaaS accounting since there are so many software businesses these days - Interpreting Financial Statements....so what do they actually mean and what can we learn about the business from them? I have watched some other videos lately and yours are head and shoulders above all the others. I wish you much success and look forward to more videos to come!
Hi James ! Thank you for posting these videos that make accounting understandable and fun ! You are truly amazing ❤️❤️ please never stop posting these videos. I loved the video of your’s on Q&A on debit and credit. Could you please do more videos where you go through Questions ? Stay safe 🙏🏻💓 Hope you get the much deserving subscribers and success 💓
Hi, I want to thank you for making these videos. Really informative and intuitive, you've made my lock down worthwhile. Thank you from New Zealand!!!!!
Superb video, as all of yours that I've seen. One suggestion and a big request to you - please explain in some of the next episodes why and when which of those depreciation methods should be used! Regards!
So compare to the double declining balance method, the depreciation expense formula is different. SYD is the rate x (asset cost - residual value) which is a fixed depreciable cost. While the DDB is rate x the opening book value which is changing every year
Great video. I would be grateful if you make a video about outsourcing and automation regarding accounting. I am currently a management major, and I am really interested in accounting. However, I am concerned about outsourcing and automation. Thank you.
your videos have actually been super helpful to me! a kindergartner can definitely understand this. i have a question, though. if, for instance, the residual value of the asset changed in year 3, let's say to $3,000, will the SYD also change? will it become 3*4/2=6 and the depreciation rate then becomes 3/6? or shall we just continue with the 3/15? i hope you'll be able to answer. thank you!!
Please make a video about no monetary exchanges with and without commercial substance (as well as with and without boot). It would be greatly appreciated.
Equipment was purchased for R460, 000 with an estimated life of 10 years and a residual value of R19, 000. What is the depreciation expense for the first 5 years using each of the following separate depreciation methods? a. Double-declining balance (15) b. Sum of the years’ digits please help
Hi! I would like to check the process when working with developers and thay buy Land. How to record Land and everything related to that subject. Thank you!
My friend, I don't think that is the meaning of depreciation. Depreciation is simply the systematic allocation of the depreciable amount over the useful life of the asset. For example, obsolescence and wear and tear are reasons for impairment, not depreciation. How do you see this?
I have one question If James or anyone knows plz let me know. If I purchased a machine at the mid of the year than how I find the rate of that year ? Using SYD method ??
In every other video I’ve looked at, they don’t start with the opening book value to calculate the first years depreciation expense. Why don’t you start the first year as 20,000? (The 25,000 - Salvage value)
Hi James, I have a truck for a business I purchased in 2019, how do I find out the residual/salvage value of the vehicle. Best - appreciate it in advance.
