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What is the Declining Balance Method of Depreciation?

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Explanation of the Declining Balance Method of Depreciation

Under the declining balance method of depreciation, depreciation is calculated in the following manner:

Step 1: Determine the asset’s book value at the beginning of the year.

Step 2: Ascertain the depreciation rate.

Step 3: Multiply the asset’s book value at the beginning of the year with the depreciation rate. A pro-rata depreciation rate will be applied if the asset was purchased in the middle of the year.

Step 4: Deduct the depreciation amount calculated in Step 3 from the asset’s book value determined at the beginning of the year in Step 1. We arrive at the written-down value of the asset at the end of the year through this.

Step 5: Repeat Step 1 to Step 4 again for the next year until the asset’s value becomes nil.

Depreciation = Book value of the asset at the beginning of the year × Depreciation rate× Number of days the asset is used during the year/365

Written down value = Book value of the asset at the beginning of the year – Depreciation

Examples of Declining Balance Method of Depreciation

Following are the examples are given below:

Example #1

Let us consider an example where a machine was purchased by Company A for \$200 on 1st January 2023 for use in producing its goods. Calculate depreciation for each year with respect to the machine. Assume the depreciation rate to be 35%.

First, we ascertain the machine’s book value at the beginning of the year.

Second, we multiply the book value at the beginning of the year with the depreciation rate.

Third, we deduct depreciation from the book value at the beginning of the year.

Year

BV at the beginning of the year

[email protected]%

BV at the end of the year

1 200.00 70.00 130.00

2 130.00 45.50 84.50

3 84.50 29.58 54.93

4 54.93 19.22 35.70

5 35.70 12.50 23.21

6 23.21 8.12 15.08

7 15.08 5.28 9.80

8 9.80 3.43 6.37

9 6.37 2.23 4.14

10 4.14 1.45 2.69

Example #2

Now let us take an example where equipment was purchased by Company B on 30th June 2023 for \$300, and the depreciation rate to be charged on this asset is 40%. Calculate depreciation on equipment for each year. Assume 360 days in a year.

First, we ascertain the machine’s book value at the beginning of the year.

Second, we multiply the book value at the beginning of the year with the depreciation rate. Since the machine was purchased on 30th June 2023, it can be said that it has been used for 6 months. Therefore, we will calculate the prorate depreciation.

Third, we deduct depreciation from the book value at the beginning of the year.

Fourth, we will calculate depreciation for the whole year for the subsequent years.

The calculations are shown below:

Year

BV at the beginning of the year

[email protected]%

BV at the end of the year

1 300.00 60.00 240.00

2 240.00 96.00 144.00

3 144.00 57.60 86.40

4 86.40 34.56 51.84

5 51.84 20.74 31.10

6 31.10 12.44 18.66

7 18.66 7.46 11.20

8 11.20 4.48 6.72

9 6.72 2.69 4.03

10 4.03 1.61 2.42

Example #3

Consider another example of furniture purchased for \$500 on 1st October 2023. Assume the depreciation rate to be 25%. Calculate depreciation for 10 years on this asset along with the book value at the end of each year. Assume 360 days in a year.

First, we ascertain the machine’s book value at the beginning of the year.

Second, we multiply the book value at the beginning of the year with the depreciation rate. Since the machine was purchased on 30th June 2023, it can be said that it has been used for 3 months. Therefore, we will calculate the prorate depreciation.

Third, we deduct depreciation from the book value at the beginning of the year.

Fourth, we will calculate depreciation for the whole year for the subsequent years.

The calculations are shown below:

Year

BV at the beginning of the year

[email protected]%

BV at the end of the year

1 500.00 31.25 468.75

2 468.75 117.19 351.56

3 351.56 87.89 263.67

4 263.67 65.92 197.75

5 197.75 49.44 148.32

6 148.32 37.08 111.24

7 111.24 27.81 83.43

8 83.43 20.86 62.57

9 62.57 15.64 46.93

10 46.93 11.73 35.20

Importance of Declining Balance Method of Depreciation Advantages of Declining Balance Method of Depreciation

Further, it balances the income statement as in later years, repair and maintenance costs increase and depreciation amount decreases. This shows a fair picture of the net income being reported.

Applying the declining balance depreciation method can prove cumbersome due to the complex mathematical calculations involved. Moreover, sometimes it is not justifiable to charge different depreciation amounts in various years as it may not depict a true and fair position.

Conclusion

Though complex, the declining balance method of depreciation is used widely in organizations for computing depreciation to be charged on fixed assets. It is a popular tool to determine the quantum of benefits an asset can fetch throughout its useful life. Though various methods are available for calculating depreciation, it is arguably the best way to compute each year’s depreciation and remaining book value.

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## Sum Of Year Digits Method Of Depreciation

Definition of Sum of Year Digits Method of Depreciation

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Explanation

The sum of year digits method of depreciation is very popular among students from a finance background. The Sum of year digits depreciation method is very effective and relevant because taking higher depreciation in the earlier years is logical. Some assets are considered less productive as time passes; therefore, every year, it is depreciated by the sum of the year’s digits method. In this case, the total is calculated of all the digits of the life of the asset and then the no of years of reaming life of the asset. After that, the depreciation is calculated.

Suppose any company chooses its asset to get the sum of year digits method of depreciation. In that case, they have a higher depreciation rate in the earlier years; after that, the depreciation rate decreases. By following this method of depreciation, the tax liability of the company can also be subsiding because if the depreciation is high, then the deduction will also be higher than the other years so, in the first year of the business, the sum of year’s digits method of depreciation helps to reduce the tax liability.

How to Calculate Sum of Year Digits Method of Depreciation?

Step 1: The accountant determines the cost of the asset.

Step 2: Determine the asset’s life in which the Sum of year digits method of depreciation is used.

Step 3: Now, we have to write the years in one column, the Years of digits in the second column, and the third column will be for the depreciation.

Step 4: In the first column, all the years are written; suppose the asset’s life is 5 years, the 1,2,….5 is written.

Step 5: In the second column, first write the reverse of the life of assets, e.g., 5, 4…1. Now add the digits written there; this is the sum of the year’s digit.

Step 6: In the third column, depreciation is calculated. The formula is (No. of years of the remaining life of asset/ Total of all digits of life of the asset).

Step 7: After calculating the depreciation, the same given effect in the financials.

Examples of Sum of Year’s Digits Method of Depreciation

A company is considering an asset to get accelerated depreciation due to its lower productivity and poor performance. The cost of that asset is \$150000, and the life of the asset is 6 years. Therefore the company wants their accountant to calculate the depreciation using the sum of year’s digits method of depreciation.

Solution:

Years

(A)

Depreciation (\$) Base

(B)

Depreciation (\$)

(C) = (B)*(A) / 21

Depreciation rate

(D) = (C)/(B)

1 6 150000          42,857.14                    0.29

2 5 150000          35,714.29                    0.24

3 4 150000          28,571.43                    0.19

4 3 150000          21,428.57                    0.14

5 2 150000          14,285.71                    0.10

6 1 150000            7,142.86                    0.05

21

In this method, the depreciation is calculated by putting the formula (No. of years of the remaining life of asset/ Total of all digits of life of the asset).

Advantages of the sum of year’s digits method of depreciation:

The sum of the year’s digits method of depreciation helps to reduce the tax liability because a larger part of the deduction is granted in the first year.

This depreciation method is very helpful for small businesses because the current tax is settled with the help of high depreciation on the asset.

The sum of the year’s digits depreciation method is widely considered highly relevant for calculating depreciation.

The Sum of Year Digits method calculates depreciation non-uniformly, which is a logical approach. The rationale behind this method is that assets naturally depreciate over time, resulting in decreased productivity.

With the help of the Sum of year’s digits method of depreciation, we can predict the asset’s usefulness.

This Method of depreciation is higher in the earlier years, and later on, it gets diminished; on the other hand, the repair and maintenance cost is lower in the earlier years of the business, whereas the repair and maintenance cost is higher in the subsequent years. Therefore the company will be able to manage the cost of the company better.

Conclusion

The company does not frequently use the sum of year’s digits method of depreciation. In some companies, very few assets are being separately depreciated as per the sum of year’s digits method of depreciation. In general terms, the sum of year’s digits method of depreciation can be a little problematic for the company because the depreciation is being captured at a higher rate at the beginning of the year. In contrast, in the later stage, the depreciation is lowered.

On the contrary, in the later stage of the business, the business gets bigger, and the tax liability increases. Therefore, the company will have to pay more taxes. As companies anticipate higher profits, they will experience lower deductions due to having claimed a larger portion of the deduction in earlier years. This is a practical problem with the sum of year’s digits method of depreciation. But this method is very helpful for small businesses because the immediate tax liability is managed with the help of higher deductions.

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## Datetime Getdatetimeformats() Method In C

The DateTime.GetDateTimeFormats() method in C# is used to convert the value of this instance to all the string representations supported by the standard date and time format specifiers.

Syntax

Following is the syntax −

public string[] GetDateTimeFormats () public string[] GetDateTimeFormats (char ch);

Above, ch is a standard date and time format string.

Example

Let us now see an example to implement the DateTime.GetDateTimeFormats() method −

using System; public class Demo {    public static void Main() {       DateTime d = new DateTime(2023, 11, 10, 7, 20, 45);       string[] res = d.GetDateTimeFormats();       foreach(string s in res)       Console.WriteLine(s);    } } Output

This will produce the following output −

11/10/2023 11/10/19 11/10/19 11/10/2023 19/11/10 2023-11-10 10-Nov-19 Sunday, November 10, 2023 November 10, 2023 Sunday, 10 November, 2023 10 November, 2023 Sunday, November 10, 2023 7:20 AM Sunday, November 10, 2023 07:20 AM Sunday, November 10, 2023 7:20 Sunday, November 10, 2023 07:20 November 10, 2023 7:20 AM November 10, 2023 07:20 AM November 10, 2023 7:20 November 10, 2023 07:20 Sunday, 10 November, 2023 7:20 AM Sunday, 10 November, 2023 07:20 AM Sunday, 10 November, 2023 7:20 Sunday, 10 November, 2023 07:20 10 November, 2023 7:20 AM 10 November, 2023 07:20 AM 10 November, 2023 7:20 10 November, 2023 07:20 Sunday, November 10, 2023 7:20:45 AM Sunday, November 10, 2023 07:20:45 AM Sunday, November 10, 2023 7:20:45 Sunday, November 10, 2023 07:20:45 November 10, 2023 7:20:45 AM November 10, 2023 07:20:45 AM November 10, 2023 7:20:45 November 10, 2023 07:20:45 Sunday, 10 November, 2023 7:20:45 AM Sunday, 10 November, 2023 07:20:45 AM Sunday, 10 November, 2023 7:20:45 Sunday, 10 November, 2023 07:20:45 10 November, 2023 7:20:45 AM 10 November, 2023 07:20:45 AM 10 November, 2023 7:20:45 10 November, 2023 07:20:45 11/10/2023 7:20 AM 11/10/2023 07:20 AM 11/10/2023 7:20 11/10/2023 07:20 11/10/19 7:20 AM 11/10/19 07:20 AM 11/10/19 7:20 11/10/19 07:20 11/10/19 7:20 AM 11/10/19 07:20 AM 11/10/19 7:20 11/10/19 07:20 11/10/2023 7:20 AM 11/10/2023 07:20 AM 11/10/2023 7:20 11/10/2023 07:20 19/11/10 7:20 AM 19/11/10 07:20 AM 19/11/10 7:20 19/11/10 07:20 2023-11-10 7:20 AM 2023-11-10 07:20 AM 2023-11-10 7:20 2023-11-10 07:20 10-Nov-19 7:20 AM 10-Nov-19 07:20 AM 10-Nov-19 7:20 10-Nov-19 07:20 11/10/2023 7:20:45 AM 11/10/2023 07:20:45 AM 11/10/2023 7:20:45 11/10/2023 07:20:45 11/10/19 7:20:45 AM 11/10/19 07:20:45 AM 11/10/19 7:20:45 11/10/19 07:20:45 11/10/19 7:20:45 AM 11/10/19 07:20:45 AM 11/10/19 7:20:45 11/10/19 07:20:45 11/10/2023 7:20:45 AM 11/10/2023 07:20:45 AM 11/10/2023 7:20:45 11/10/2023 07:20:45 19/11/10 7:20:45 AM 19/11/10 07:20:45 AM 19/11/10 7:20:45 19/11/10 07:20:45 2023-11-10 7:20:45 AM 2023-11-10 07:20:45 AM 2023-11-10 7:20:45 2023-11-10 07:20:45 10-Nov-19 7:20:45 AM 10-Nov-19 07:20:45 AM 10-Nov-19 7:20:45 10-Nov-19 07:20:45 November 10 November 10 2023-11-10T07:20:45.0000000 2023-11-10T07:20:45.0000000 2023-11-10T07:20:45 7:20 AM 07:20 AM 7:20 07:20 7:20:45 AM 07:20:45 AM 7:20:45 07:20:45 2023-11-10 07:20:45Z Sunday, November 10, 2023 7:20:45 AM Sunday, November 10, 2023 07:20:45 AM Sunday, November 10, 2023 7:20:45 Sunday, November 10, 2023 07:20:45 November 10, 2023 7:20:45 AM November 10, 2023 07:20:45 AM November 10, 2023 7:20:45 November 10, 2023 07:20:45 Sunday, 10 November, 2023 7:20:45 AM Sunday, 10 November, 2023 07:20:45 AM Sunday, 10 November, 2023 7:20:45 Sunday, 10 November, 2023 07:20:45 10 November, 2023 7:20:45 AM 10 November, 2023 07:20:45 AM 10 November, 2023 7:20:45 10 November, 2023 07:20:45 November 2023 November 2023 Example

Let us now see another example to implement the DateTime.GetDateTimeFormats() method. For char format, we use format specifiers like “d” for Short date pattern, “D” for Long date pattern, “F” for Full date/time pattern (long time), etc,

using System; public class Demo {    public static void Main() {       DateTime d = new DateTime(2023, 11, 10, 7, 20, 45);       string[] res = d.GetDateTimeFormats('F');       foreach(string s in res)       Console.WriteLine(s);    } } Output

This will produce the following output −

Sunday, November 10, 2023 7:20:45 AM Sunday, November 10, 2023 07:20:45 AM Sunday, November 10, 2023 7:20:45 Sunday, November 10, 2023 07:20:45 November 10, 2023 7:20:45 AM November 10, 2023 07:20:45 AM November 10, 2023 7:20:45 November 10, 2023 07:20:45 Sunday, 10 November, 2023 7:20:45 AM Sunday, 10 November, 2023 07:20:45 AM Sunday, 10 November, 2023 7:20:45 Sunday, 10 November, 2023 07:20:45 10 November, 2023 7:20:45 AM 10 November, 2023 07:20:45 AM 10 November, 2023 7:20:45 10 November, 2023 07:20:45

## Amd Is â€˜Undershippingâ€™ Chips To Balance Cpu, Gpu Supply

“We have been undershipping the sell-through or consumption for the last two quarters,” Su said, as spotted by PC Gamer. “We undershipped in Q3, we undershipped in Q4. We will undership, to a lesser extent, in Q1.”

With the pandemic winding down and inflation ramping up, far fewer people are buying CPUs, GPUs, and PCs. It’s a hard, sudden reverse from just months ago, when companies like Nvidia and AMD were churning out graphic cards as quickly as possible to keep up with booming demand from cryptocurrency miners and PC gamers alike. Now that GPU mining is dead, shelves are brimming with unsold chips.

Update: Drew Prairie, AMD’s VP of communications, reached out with the following clarification: “We are shipping below consumption because there is too much inventory in the channel and that partners want to carry lower levels of inventory based on the demand they are seeing and their expectations for their business…the idea we are doing this to keep prices “elevated” isn’t accurate. Our client ASP was flat year over year, and that is due to mix of CPUs shipped.”

This article originally published with the headline “AMD is ‘undershipping’ chips to keep CPU, GPU prices elevated” but it has been updated to reflect AMD’s clarification.

Despite the painfully high price tags of new next-gen GPUs, last-gen GeForce RTX 30-series and Radeon RX 6000-series graphics cards are still selling for very high prices considering their two-year-old status. Strategic under-shipping helps companies maintain higher prices for their wares.

The Flagship Radon RX 7900 XTX is on of the few ‘worthy’ next-gen GPUs

Radeon RX 7900 XTX

AMD isn’t the only one doing it, either.

“We’re continuing to watch each and every day in terms of the sell-through that we’re seeing,” Nvidia CFO Colette Kress said to investors in November. “So we have been undershipping. We have been undershipping gaming at this time so that we can correct that inventory that is out in the channel.”

Since then, Nvidia has released the \$1,200 GeForce RTX 4080 and \$800 RTX 4070 Ti, two wildly overpriced graphics cards, and tried positioning them as enthusiast-grade upsells over the RTX 30-series, rather than treating them like the usual cyclical upgrades. AMD’s \$900 Radeon RX 7900 XT offers similarly disappointing value and the company recently released a blog post also positioning its new GPUs as enthusiast-grade upsells.

Overall gross margin is a key metric for chip companies, which burn through a ton of cash investing in R&D and cutting-edge technological processes. AMD’s market tricks helped it achieve a 51 percent non-GAAP gross margin last quarter, while Intel forecasted a terrifyingly low 34.1 percent gross margin for the upcoming quarter (hence its belt-tightening moves).

Intel Arc A750 Limited Edition

This all helps explain why street prices for standalone GPUs haven’t plummeted, even as deals on desktops and laptops have started ramping up. We expect—hope?—that as stocks dwindle down and competition ramps up, sanity will return to graphics card prices, mirroring AMD and Intel’s recent CPU price adjustments. Just this morning, Intel announced that its Arc A750 graphics card was getting a price cut to \$250, instantly making it an all-too-rare tempting target for PC gamers on a budget.

## How To Call A Method In Java

How to call a method in Java – the basics

To call a method in Java, you type the method’s name, followed by brackets.

For example, the following will call a method called “helloMethod()”:

Code

helloMethod();

In order for this to work though, we first need to create our helloMethod() method. We can see what helloMethod might look like, here:

Code

public static void helloMethod() {     System.out.println("Hello world!"); How to create methods in Java

Let’s rewind a moment and take a closer look at the method we created. Why does it look the way it does?

To build a method, we use a number of statements to define that method. In the previous example:

Public – Means that the method is accessible to other classes outside of this one

Static – Means that the method belongs to the class and not the instance of the class

Void – Means that the method does not return a value

If none of that makes any sense to you, don’t worry! Most new developers will be able to use “public static void” for the majority of their methods and won’t have to worry. That said, we’ll address two of these phrases in the coming sections.

It is considered good practice to name Java methods using “camel case.” As we aren’t allowed spaces, camel case gets around this by capitalizing every word except the first one. Methods should generally be verbs (though I have bent that rule here!).

How to use arguments when calling a method in Java

As mentioned, we can place arguments inside of the brackets when defining our methods. This allows us to pass variables, and therefore values, between methods.

For example, a “String” is a type of variable that holds alphanumeric characters. We create a string by using the word “String” followed by the name.

Now, whenever we call that method, we need to add the value we want to use in the brackets.

Code

helloClass.helloMethod("Hello there!"); public static void helloMethod(String helloMessage) {     System.out.println(helloMessage);   } How to call a method from outside the class

A public method is a method that can be called from outside your class. To do this, you use the following syntax:

nameOfClass.nameOfMethod(arguments)

For example:

Code

class Main {   public static void main(String[] args) {     helloClass.helloMethod();   } } class helloClass {   public static void helloMethod() {     System.out.println("Hello world!");   } }

However, if we wanted to prevent this from working, we would simply replace the word “public” with the word “private”.

How to return values

Finally, we can return specific values from our methods. Let’s see how this might be used.

Let’s say we decide we want the method to provide our greeting but not display it onto the screen. Thus, we might make the method return a string. To do this, we change the word “void” for the type of variable we want to return, and we add “return value” at the end of the method.

This changes how we call a method in Java, because we can simply insert the name of the method in-line in our code, as though it were a variable:

Code

class Main {   public static void main(String[] args) {     System.out.println(helloMethod());   }   public static String helloMethod() {       return "Hello there!";   }

## Steps To Implement The Jquery Fadeout() Method

Introduction to jQuery fadeOut()

The fadeOut() method of jQuery is used to gradually hide an element in the DOM by fading it to transparency. This is a very straightforward method. If the element is visible and the fadeOut() method is called on that element, the element slowly turns transparent until it becomes invisible.

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Syntax for jQuery fadeOut()

NOTE: jQuery methods are case sensitive. Be careful to capitalize the letter ‘O’ in the fadeOut() method.

Syntax #1

The basic and the most elementary syntax is as follows:

This method will fade the element in 400 milliseconds. The value 400 is the default value of the duration parameter.

Syntax #2

Here duration is the time in milliseconds for the fading animation effect. If this argument is not supplied, the default value of 400 milliseconds is applied. The complete is a callback function that is called once the fading-out animation is complete. A very important point to note here is that the callback function is called once for each element.

Syntax #3

The jQuery v1.4.3 introduced another variation of the fadeOut method. It expected another string-typed parameter that would define the type of transition during the animation. The possible values are ‘swing’ or ‘linear’, the former being the default.

So, how does the fadeOut method achieve its goal? Simple answer, it plays with the CSS opacity and displays properties of the element. Over the duration of the fading out activity, the opacity of the element is gradually decreased. Once it reaches zero, the display property is set to none. The higher the duration, the slower is the fading animation.

Examples of jQuery fadeOut()

Let us look at some of the examples of the fadeOut() method.

NOTE: Throughout the examples in this article, we would be using the browsers’ developer console. Simply open the browser developer tools (Ctrl/Cmd + Shift + C) and go to the Console tab in the developer tools window.

The window will look like the below screen in Chrome:

Next, we identify the element we would like to fade. Let’s fade out the jQuery logo. From the Elements tab in the developer window, you would see that the element is this:

This element is uniquely defined through a class logo. We would use this class as a selector.

NOTE: When using a class as a selector, all the elements to which the class is applied are selected. To select a single element, use the id attribute.

Next, go to the console tab and type the following command:

As you press enter, notice that the jQuery logo slowly disappears from the page.

Next, go back to the Elements tab and search for the logo element again. Notice the addition of CSS display property to the element now. It has now changed to this:

But wait, we couldn’t see the opacity property in action. Let’s do that. Go back to the console tab and type the following command:

We are giving a duration of 10 seconds for the fading animation. As you press enter, be quick to go back to the Elements tab. You would notice that the jQuery logo disappears on the page with the CSS opacity property in action.

Implementation of jQuery fadeOut()

Step 1 –  Open Notepad and Paste the Following Code in it.

Step 2 – Save the File as an HTML File

Save the file with the extension .html. This will save the file as an HTML file.

Step 3 – Open the Browser and Open the File You Just Saved

The rendered HTML page would look like this:

Conclusion

So, we have covered the fadeOut() function of jQuery in this article. We have understood how the fadeOut function works behind the scenes. In addition, we implemented our own working fadeOut model. Also, once the concept is familiarised, you would play around more with various other optional parameters supported by the fadeOut method.

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