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Depreciation Worksheet Form

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Instructions and help about sample depreciation worksheet

Imagine that you own a bakery One day your oven breaks so you rush out to buy a new one You plug it in or hook it up whatever you do with ovens and then you're back at it Mixing, kneading, folding, proofing Oh.. hey there! I'm James and this is Accounting Stuff Anyway as time passes your new oven slowly wears down just like your old one and eventually it’ll break too This is where depreciation comes in What is depreciation? It’s the process of reducing the book value of a tangible fixed asset due to use wear and tear the passing of time or obsolescence An asset is something that you own that’s valuable and which will bring you economic benefit in the future something like your oven which you’ll use to make money Your oven is a fixed asset because you'll use it for a long time and it's a tangible asset because it physically exists you can touch it you can't touch intangible assets and they don't depreciate they amortize instead but

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