When you decorate, you may be involved in the depreciation of decoration. The calculation of depreciation expense is complicated, but it is linked to our interests, so we must understand it clearly in advance. Below we will tell you how to calculate the 5-year depreciation expense of 450,000 decoration expenses, and how to calculate the depreciation expense of decoration generally.

How to calculate 5-year depreciation for 450,000 decoration expenses?

1, included in the fixed assets. If the decoration expenses account for more than 20% of the original value of the house, or the house decoration changes, or the residential house is greatly expanded, the decoration expenses can be included in the fixed assets, plus the original fixed assets, and the decoration expenses will be depreciated in the next month within the remaining service life of the fixed assets.

2. Transfer to long-term deferred expenses If the decoration amount is large and the service life is long, the decoration expenses can be transferred to long-term deferred expenses and amortized at the beginning of the month. The amortization period can refer to the estimated service life of the renovated house.

3, directly included in the current expenses If the amount of decoration expenses is really small relative to the total assets of the enterprise, it can also be directly included in the current month's expenses.

How to calculate the depreciation charge for decoration?

1, included in fixed assets.

If the renovation cost accounts for more than 20% of the original value of the house, or the renovation changes the use of the house or significantly prolongs the service life of the house, the renovation cost can be included in the fixed assets, and depreciation (renovation cost+original value of the fixed assets) will be accrued together with the original fixed assets within the remaining service life of the fixed assets from the next month of renovation.

2. Included in long-term deferred expenses

If the decoration amount is large and the service life is long, the decoration expenses can be included in the long-term deferred expenses and amortized in the current month. Amortization period can refer to the estimated service life after house decoration.

3. Directly included in the current expenses.

If the decoration fee is really small relative to the total assets of the enterprise, it can also be directly included in the period fee of the current month.

The calculation formula of decoration depreciation expense is as follows:

1. Average service life method: annual depreciation rate =( 1- net salvage value rate)/estimated service life monthly depreciation rate = annual depreciation rate /65438+ February depreciation amount = original value * monthly depreciation rate.

2. Sum of years method: depreciation rate = sum of acceptable service life/estimated service life * 100% depreciation amount = (original value of fixed assets-estimated net residual value) * depreciation amount.

How to calculate the 5-year depreciation expense of 450,000 decoration expenses? Under normal circumstances, how to calculate all the contents of the decoration depreciation expense? I will sort it out for you here.