Depreciation Units-of-Activity, Double-Declining-Balance DDB, Sum-of-the-Years-Digits
But as time goes by, the fixed asset may experience problems due to wear and tear, which would result in repairs and maintenance costs. That’s why depreciation expense is lower in the later years because of the fixed asset’s decreased efficiency and high maintenance cost. FitBuilders estimates that the residual or salvage value at the end of the fixed asset’s [...]
