Depreciation is typically used to determine a capital asset's present value. It is, at best, an inaccurate science and typically used in business primarily for tax-related purposes. Depreciation schedules are typically established by IRS rules. Since there are no tax implication for schools, the only things I could think of that this would be used for is for establishing values for insurance policies in which case you may be able to get this information from your insurance carrier or for leases in which case the leasing company would have worked this out.
Thinking (WAY) back to my accounting courses in college, simple depreciation (book value) is determined by subtracting the salvage value (what the asset is worth when you will get rid of it - minimum value of $1) from the purchase price, then dividing it by the number of periods you expect to keep it. So if you plan to keep a computer for 5 years and you estimate the salvage value at the end of the 5 years is $1, considering a purchase price of $1001, your annual depreciation amount would be $200 so at the end of the first year, your depreciated value would be $801, at the end of the 2nd year - $601, etc. -TS Thomas C. Steele Technology Director Manteno CUSD #5 From: tech-geeks-boun...@tech-geeks.org [mailto:tech-geeks-boun...@tech-geeks.org] On Behalf Of Bob Morse Sent: Thursday, September 16, 2010 9:24 AM To: 'Tech-Geeks Mailing List' Subject: [tech-geeks] depreciation of value on tech items I just found with the recent hire of a new business manager that our business office has been doing things wrong in a lot of ways but particularly when it comes to technology I was supposed to of been keeping tabs on depreciation values on all tech items purchased above a certain amount of $$$. This all new to me because I my 8 years here I have never been instructed to do this, let alone on how. Can you share with me exactly how your business office manages this and what formula(s) you use to figure depreciation of value? I'm sure I can find it on the net but you guys are so much better than using the net for any research!!! Thanks, Bob Morse E-Rate Coordinator Technology Specialist Community Consolidated Schools District 168 708-758-1610 ext. 124 Skype: bmorse68
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