Instructor-led lessons • Self-paced—learn on your schedule
Lesson 1
- Depreciation for book v. tax purposes. Two ways to compute depreciation.
- Depreciation for book purposes (GAAP). Determining the cost of an asset v. group of assets v. contributed assets under GAAP. Setting the asset’s estimated life, residual value and book value. How depreciation appears on the financial statements.
Lesson 2
- The straight-line method of depreciation. How to compute, allocate, book and set up the schedule for straight-line depreciation.
- The units of production method of depreciation. How to compute, allocate, book and set up the schedule for units of production depreciation.
Lesson 3
- The declining balance method of depreciation. How to compute, allocate, book and set up the schedule for declining balance depreciation.
- The sum-of-the-years’-digits method of depreciation. How to compute, allocate, book and set up the schedule for sum-of-the-years’-digits of depreciation
Lesson 4
Depreciation for tax purposes. How to depreciate equipment and buildings under MACRS, apply the half-year, mid-quarter and mid-month conventions. When and how to elect the Section 179 deduction. Setting up and maintaining the tax depreciation schedule.
Lesson 5
- Depreciation vehicles and cars for tax purposes. Using Sec. 179 v. tax depreciation for vehicles that are modified or weigh over 6,000 lbs. How annual IRS depreciation limits apply to cars, unmodified SUVs, pickups and vans weighing up to 6,000 lbs. Recording depreciation of employee personal use of company vehicles. Setting up and maintaining the tax depreciation schedule.
Final Exam
Take the open-book final exam online, attain a grade of at least 70, and instantly receive a personal Certificate of Completion in Mastering Depreciation, suitable for framing.