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Written Down Value Method(Example) | How to Calculate Depreciation under WDV Method? [Video]

Written Down Value Method(Example) | How to Calculate Depreciation under WDV Method?

In this video on Written Down Value Method, here we discuss how to calculate written down value (WDV) Depreciation along with practical examples and detail explanation.

๐–๐ก๐š๐ญ ๐ข๐ฌ ๐–๐ซ๐ข๐ญ๐ญ๐ž๐ง ๐ƒ๐จ๐ฐ๐ง ๐•๐š๐ฅ๐ฎ๐ž ๐Œ๐ž๐ญ๐ก๐จ๐?
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Written Down Value method is a depreciation technique which applies a constant rate of depreciation to the net book value of the assets each year thus recognizing more depreciation expenses in the early years of the asset’s life and less depreciation in the later years of the asset’s life.

๐–๐ซ๐ข๐ญ๐ญ๐ž๐ง ๐ƒ๐จ๐ฐ๐ง ๐•๐š๐ฅ๐ฎ๐ž ๐Œ๐ž๐ญ๐ก๐จ๐ ๐…๐จ๐ซ๐ฆ๐ฎ๐ฅ๐š
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Written Down Value Method = (Cost of Asset โ€“ Salvage Value of the Asset) * Rate of Depreciation (in %)

๐–๐ซ๐ข๐ญ๐ญ๐ž๐ง ๐ƒ๐จ๐ฐ๐ง ๐•๐š๐ฅ๐ฎ๐ž ๐Œ๐ž๐ญ๐ก๐จ๐ ๐„๐ฑ๐š๐ฆ๐ฉ๐ฅ๐ž
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ABC Company purchased a $14,000 Machinery with a 3 year useful life and a residual value of $3,000. Depreciation rates are 18%.

Calculation of written down value (WDV) of depreciation using above formula can be done as follows โ€“

Depreciation = ($14,000 โ€“ $3,000) * 18%

Depreciation = $1,980

Calculation at end of the year can be done as follows โ€“

Value at End of Year = ($14,000 โ€“ $3,000) โ€“ $1,980

Value at End of Year = 9,020

Similarly, we can do the calculation as shown above for year 2 and 3.

To know more about the ๐–๐ซ๐ข๐ญ๐ญ๐ž๐ง ๐ƒ๐จ๐ฐ๐ง ๐•๐š๐ฅ๐ฎ๐ž ๐Œ๐ž๐ญ๐ก๐จ๐, you can go to this ๐ฅ๐ข๐ง๐ค ๐ก๐ž๐ซ๐ž:- https://www.wallstreetmojo.com/written-down-value-method/

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Are you considering a career in accounting? This video tackles the burning question: does accounting have a good future?We delve into the high demand for accountants in the US, exploring reasons for the current shortage:Burnout from long hours in public accounting, pushing professionals to greener pastures.Attractive salaries in finance and tech luring college graduates away from accounting majors.Perceptions of accounting as boring and monotonous contributing to declining interest.Despite these challenges, the current outlook remains positive for accountants, with job openings projected to grow, even as the profession evolves.Watch this video for:- Insights into the demand for accountants- Understanding the reasons behind the shortage- Weighing the pros and cons of a career in accountingWhether you're a student pondering your future or a professional considering a career change, this video offers valuable information to help you make an informed decision.0:00 Introduction0:24 The demand for accountants1:33 Reasons for the shortage of accountants3:06 How technology might affect the demand for accountantsโ€” Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspiraโ€™s mission is to make a high-quality business education freely available to the world.โ€” SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS: โ€ข A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTINGโ€ข A 44-PAGE GUIDE TO U.S. TAXATIONโ€ข A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSISโ€ข MANY MORE FREE PDF GUIDES AND SPREADSHEETS* http://eepurl.com/dIaa5zโ€” SUPPORT EDSPIRA ON PATREON*https://www.patreon.com/prof_mclaughlinโ€” GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT * https://edspira.thinkific.com โ€” LISTEN TO THE SCHEME PODCAST * Apple Podcasts: https://podcasts.apple.com/us/podcast/scheme/id1522352725 * Spotify: https://open.spotify.com/show/4WaNTqVFxISHlgcSWNT1kc * Website: https://www.edspira.com/podcast-2/ โ€” GET TAX TIPS ON TIKTOK * https://www.tiktok.com/@prof_mclaughlin โ€” ACCESS INDEX OF VIDEOS * https://www.edspira.com/index โ€” CONNECT WITH EDSPIRA * Facebook: https://www.facebook.com/Edspira * Instagram: https://www.instagram.com/edspiradotcom * LinkedIn: https://www.linkedin.com/company/edspira โ€” CONNECT WITH MICHAEL * Twitter: https://www.twitter.com/Prof_McLaughlin * LinkedIn: https://www.linkedin.com/in/prof-michael-mclaughlin โ€” ABOUT EDSPIRA AND ITS CREATOR * https://www.edspira.com/about/* https://michaelmclaughlin.com

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