Depreciation of 10% - (For this record book it will be on simple straight-line depreciation with no This will be 10% per project year of the original salvage value and an assumed 10-year life) purchase cost for the items you will still have at the end of the project. This includes items you had at the beginning of the project as well as items purchased during the year. Depreciation is the loss in value of your assets due to wear and tear and it is an expense. at the end of the project This is the value at the beginning of the project minus the – current year’s depreciation. Examples Original Purchase Value at Value at Items Cost or Beginning of end of Description Date Acquired Value Project Depreciation project Rope 09/2010 5.00 3.50 .50 3.00 5.00 Gift from parents Fair value Depreciated in prior Depreciation this year -1.50 Explanation 4 ago at start when 3 yrs 10% per year = 10% of 5.00 -0.50 of project received value = 5.00 1.50 – 3.00 Brush 01/2014 6.00 5.40 .60 4.80 6.00 Depreciated in Purchased last Purchase Depreciation this year -0.60 Explanation year 10% project year price = 10% of 6.00 -0.60 Value = 6.00 0.60 – 4.80 Total 1.10 Depreciation * Value of 7.80 Project Assets *Depreciation is an expense. Project Inventory Continued List all equipment and assets you had at the beginning of the project. listing existing inventory, you should also list those items you purchased this year that you will keep after the project is finished. List the items you will keep past the end of this project on this page only (inventory examples include clippers, blowers, chutes, tack, etc.). Do NOT list expendable items such as shampoo, etc. Refer to Notes for Project Inventory, page 4, for descriptions of each column. Original at Value at Depreciation Date Purchase Beginning end of (10% of Item Description Acquired Cost or Value of Project project Original Cost)
Depreciation of 10% - (For this record book it will be on simple straight-line depreciation with no salvage value and an assumed 10-year life) This will be 10% per project year of the original purchase cost for the items you will still have at the end of the project. This includes items you had at the beginning of the project as well as items purchased during the year. Depreciation is the loss in value of your assets due to wear and tear and it is an expense. at the end of the project – This is the value at the beginning of the project minus the current year’s depreciation. Examples Items Description Date Acquired Original Purchase Cost or Value Value at Beginning of Project Depreciation Value at end of project Rope 09/2010 5.00 3.50 .50 3.00 Explanation Gift from parents 4 ago at start of project Fair value when received Depreciated in prior 3 yrs 10% per year value = 5.00 – 1.50 Depreciation this year = 10% of 5.00 5.00 -1.50 -0.50 3.00 Brush 01/2014 6.00 5.40 .60 4.80 Explanation Purchased last project year Purchase price Depreciated in year 10% Value = 6.00 – 0.60 Depreciation this year = 10% of 6.00 6.00 -0.60 -0.60 4.80 Total Depreciation * 1.10 Value of Project Assets 7.80 *Depreciation is an expense. Project Inventory Continued List all equipment and assets you had at the beginning of the project. listing existing inventory, you should also list those items you purchased this year that you will keep after the project is finished. List the items you will keep past the end of this project on this page only (inventory examples include clippers, blowers, chutes, tack, etc.). Do NOT list expendable items such as shampoo, etc. Refer to Notes for Project Inventory, page 4, for descriptions of each column. Item Description Date Acquired Original Purchase Cost or Value at Beginning of Project Depreciation (10% of Original Cost) Value at end of project