Depreciation Explained | Accounting How To | How to Pass Accounting Class

Depreciation Explained | Accounting How To | How to Pass Accounting Class explains Depreciation basics, adjusting entries for depreciation expense and accumulated depreciation, answers the question "what is depreciation?", explains depreciation methods available, factors in computing depreciation, introduces accumulated depreciation, the difference between accounting and tax depreciation, straight line depreciation, variable depreciation, and accelerated depreciation. This video is part of a five-part series covering all aspects of depreciation. This is an accounting tutorial for accounting students, business owners, and bookkeepers to explain accounting basics for beginners. Featuring Terrance the T-Account Rex and accounting educator, Caroline Grimm, this accounting tutorial is part of the playlist series How to Pass Accounting Class and Understanding Adjusting Journal Entries. ⏰ Accounting How To Time Stamps: 00:00 Introduction and Accounting Humor 00:48 Difference between accounting depreciation and tax depreciation 00:57 Introduction to Fixed Assets (Long-term assets or property, plant, and equipment assets) 01:30 Purpose of Fixed Assets 02:07 Expensing Assets over time 02:15 Allocating of Expenses vs Valuation of an Asset 02:59 Estimating Depreciation 03:06 Estimating Useful Life (Class Life) 03:14 Estimating Salvage Value (Residual Value) 03:35 Cost of an Asset—what’s included? 04:44 IRS Class Life Groups 05:15 How to determine salvage or residual value 05:36 Introduction to Accumulated Depreciation 05:45 What is a contra account?